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Sycamore Networks (Sycamore Networks) Net-Net Working Capital : $2.04 (As of Jan. 2013)


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What is Sycamore Networks 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.

Sycamore Networks's Net-Net Working Capital for the quarter that ended in Jan. 2013 was $2.04.

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

SCMR's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 6.765
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Sycamore Networks Net-Net Working Capital Historical Data

The historical data trend for Sycamore Networks'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.

Sycamore Networks Net-Net Working Capital Chart

Sycamore Networks Annual Data
Trend Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.34 21.37 19.15 13.50 12.53

Sycamore Networks Quarterly Data
Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13
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 12.39 11.83 12.53 4.73 2.04

Competitive Comparison of Sycamore Networks's Net-Net Working Capital

For the Communication Equipment subindustry, Sycamore Networks'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.


Sycamore Networks's Price-to-Net-Net-Working-Capital Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sycamore Networks's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Sycamore Networks Net-Net Working Capital Calculation

Sycamore Networks's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jul. 2012 is calculated as

Net-Net Working Capital(A: Jul. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(371.619+0.75 * 7.785+0.5 * 8.469-19.703
-0-0)/28.879
=12.53

Sycamore Networks's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jan. 2013 is calculated as

Net-Net Working Capital(Q: Jan. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(64.484+0.75 * 8.44+0.5 * 9.162-16.538
-0-0)/28.882
=2.04

* 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.


Sycamore Networks  (OTCPK:SCMR) 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.


Sycamore Networks Net-Net Working Capital Related Terms

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Sycamore Networks (Sycamore Networks) Business Description

Traded in Other Exchanges
N/A
Address
Sycamore Networks Inc was incorporated under the laws of the State of Delaware on February 17, 1998. The Company develops and markets Intelligent Bandwidth Management solutions for fixed line and mobile network operators worldwide and provides services associated with such products.
Executives
Robert E Donahue director
John W Gerdelman director C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824
Alan Cormier officer: General Counsel and Secretary 220 MILL ROAD, CHELMSFORD MA 01824