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Roundys (Roundys) Net-Net Working Capital : $-20.46 (As of Sep. 2015)


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What is Roundys Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Roundys's Net-Net Working Capital for the quarter that ended in Sep. 2015 was $-20.46.

The industry rank for Roundys's Net-Net Working Capital or its related term are showing as below:

RNDY's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Defensive industry.
Industry Median: 7.96
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Roundys Net-Net Working Capital Historical Data

The historical data trend for Roundys's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roundys Net-Net Working Capital Chart

Roundys Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Net-Net Working Capital
Get a 7-Day Free Trial -29.39 -24.68 -21.19 -21.90 -20.46

Roundys Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -19.46 -20.46 -20.43 -20.36 -20.46

Competitive Comparison of Roundys's Net-Net Working Capital

For the Grocery Stores subindustry, Roundys's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Roundys's Price-to-Net-Net-Working-Capital Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Roundys's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Roundys's Price-to-Net-Net-Working-Capital falls into.



Roundys Net-Net Working Capital Calculation

Roundys's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

Net-Net Working Capital(A: Dec. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(58.576+0.75 * 0+0.5 * 275.457-1205.742
-0-0)/49.334
=-20.46

Roundys's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2015 is calculated as

Net-Net Working Capital(Q: Sep. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(32.648+0.75 * 0+0.5 * 290.396-1188.333
-0-0)/49.381
=-20.46

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Roundys  (NYSE:RNDY) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Roundys Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Roundys's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Roundys (Roundys) Business Description

Traded in Other Exchanges
N/A
Address
Roundys, Inc. is a Midwest supermarket founded in 1872 as a privately owned food wholesaling company. The Company is a food retailer in the state of Wisconsin. It owns and operates 163 retail grocery stores, of which 121 are located in Wisconsin, 29 are located in Minnesota and 13 are located in Illinois. It also distributes a full line of food and non-food products from three wholesale distribution centers and provides services to one independent licensee retail grocery store in Wisconsin. The Company completed the initial public offering on February 13, 2012. Its stores feature expansive meat, produce, deli and other perishable products and specialty and prepared foods departments. It also offers a line of health and beauty care products and a selection of seasonal merchandise to maximize the conveniences offered to its customers. The Company operates retail grocery stores under its Pick 'n Save, Rainbow, Copps, Metro Market and Mariano's retail banners. Many of its product categories include natural and organic options, catering to its customers' focus on healthier eating choices. It provides its customers with a compelling one-stop shopping experience featuring a level of customer service in its attractive and convenient stores. The Company's products can be classified as non-perishable, perishable and non-food. Non-perishable food categories consist of grocery, frozen, and dairy products. Perishable categories include produce, meat, seafood, deli, bakery and floral. Non-food includes general merchandise, health and beauty care, pharmacy, and alcohol. It distributes personalized offers to customers via email/ digital communication, in-store coupons and direct mail communications based on specific behaviors, measured through its loyalty card activity. The Company competes with conventional, national and regional supercenters such as; New Albertson's, Inc., Costco, Target and Wal-Mart, Woodman's and Meijer's, Festival Foods and Piggly Wiggly, Aldi, Trader Joe's and Whole Foods, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company is subject to federal, state and local laws and regulations relating to zoning, land use, environmental protection, work place safety, public health, community right-to-know, alcoholic beverage sales, tobacco sales and pharmaceutical sales.
Executives
Patrick J. Condon director 505 SOUTH GILLETTE AVE., GILLETTE WY 82716
Gregory P Josefowicz director 850 76TH STREET SW, GRAND RAPIDS MI 49518
Robert A Mariano director, officer: President, CEO and Chairman 875 E WISCONSIN AVENUE, SUITE 100, MILWAUKEE WI 53202
Darren W Karst officer: EVP, CFO & Assistant Secretary P.O. BOX 473 (MS-2030), MILWAUKEE WI 53201-0473

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