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Tyco International (Tyco International) Net-Net Working Capital : $-12.87 (As of Jun. 2016)


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What is Tyco International 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.

Tyco International's Net-Net Working Capital for the quarter that ended in Jun. 2016 was $-12.87.

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

TYC's Price-to-Net-Net-Working-Capital is not ranked *
in the Business Services industry.
Industry Median: 6.26
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Tyco International Net-Net Working Capital Historical Data

The historical data trend for Tyco International'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.

Tyco International Net-Net Working Capital Chart

Tyco International Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.30 -11.19 -11.10 -11.42 -12.98

Tyco International Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 -12.94 -12.98 -13.60 -13.55 -12.87

Competitive Comparison of Tyco International's Net-Net Working Capital

For the Security & Protection Services subindustry, Tyco International'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.


Tyco International's Price-to-Net-Net-Working-Capital Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Tyco International's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Tyco International Net-Net Working Capital Calculation

Tyco International's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2015 is calculated as

Net-Net Working Capital(A: Sep. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1401+0.75 * 1775+0.5 * 627-8245
-0-35)/403.317
=-12.98

Tyco International's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2016 is calculated as

Net-Net Working Capital(Q: Jun. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(345+0.75 * 1805+0.5 * 656-7228
-0-35)/407.003
=-12.87

* 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.


Tyco International  (NYSE:TYC) 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.


Tyco International Net-Net Working Capital Related Terms

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Tyco International (Tyco International) Business Description

Traded in Other Exchanges
N/A
Address
Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212
Tyco International PLC is a global provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.

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