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Stornoway Diamond (Stornoway Diamond) Net-Net Working Capital : $-0.52 (As of Jun. 2019)


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What is Stornoway Diamond 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.

Stornoway Diamond's Net-Net Working Capital for the quarter that ended in Jun. 2019 was $-0.52.

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

SWYDF's Price-to-Net-Net-Working-Capital is not ranked *
in the Metals & Mining industry.
Industry Median: 5.53
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Stornoway Diamond Net-Net Working Capital Historical Data

The historical data trend for Stornoway Diamond'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.

Stornoway Diamond Net-Net Working Capital Chart

Stornoway Diamond Annual Data
Trend Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Dec16 Dec17 Dec18
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.32 - -0.47 -0.53 -0.63

Stornoway Diamond Quarterly Data
Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 -0.65 -0.69 -0.63 -0.64 -0.52

Competitive Comparison of Stornoway Diamond's Net-Net Working Capital

For the Other Precious Metals & Mining subindustry, Stornoway Diamond'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.


Stornoway Diamond's Price-to-Net-Net-Working-Capital Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Stornoway Diamond's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Stornoway Diamond Net-Net Working Capital Calculation

Stornoway Diamond's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2018 is calculated as

Net-Net Working Capital(A: Dec. 2018 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(26.642+0.75 * 0.459+0.5 * 50.263-630.942
-0-0)/923.152
=-0.63

Stornoway Diamond's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2019 is calculated as

Net-Net Working Capital(Q: Jun. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(16.056+0.75 * 4.208+0.5 * 43.634-519.431
-0-0)/926.583
=-0.52

* 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.


Stornoway Diamond  (OTCPK:SWYDF) 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.


Stornoway Diamond Net-Net Working Capital Related Terms

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Stornoway Diamond (Stornoway Diamond) Business Description

Traded in Other Exchanges
N/A
Address
1111 St. Charles Street West, Tour Ouest, Suite 400, Longueuil, QC, CAN, J4K 5G4
Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.

Stornoway Diamond (Stornoway Diamond) Headlines

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Stornoway Announces Recommencement of Renard Mine Operations

By GlobeNewswire GlobeNewswire 07-04-2018

Stornoway Announces Board Appointment

By GlobeNewswire GlobeNewswire 06-13-2018

Stornoway Receives Notice of Delisting Review by TSX

By GlobeNewswire GlobeNewswire 08-22-2019

Stornoway Granted Approval and Vesting Order

By GlobeNewswire GlobeNewswire 10-07-2019