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Virtusa (Virtusa) Net-Net Working Capital : $-12.09 (As of Dec. 2020)


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What is Virtusa 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.

Virtusa's Net-Net Working Capital for the quarter that ended in Dec. 2020 was $-12.09.

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

VRTU's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.09
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Virtusa Net-Net Working Capital Historical Data

The historical data trend for Virtusa'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.

Virtusa Net-Net Working Capital Chart

Virtusa Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.73 -3.61 -11.50 -13.18 -17.50

Virtusa Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 -14.50 -17.50 -15.37 -14.19 -12.09

Competitive Comparison of Virtusa's Net-Net Working Capital

For the Information Technology Services subindustry, Virtusa'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.


Virtusa's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

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

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



Virtusa Net-Net Working Capital Calculation

Virtusa's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2020 is calculated as

Net-Net Working Capital(A: Mar. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(300.622+0.75 * 148.95+0.5 * 0-832.3
-107.326-0)/30.1328
=-17.50

Virtusa's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2020 is calculated as

Net-Net Working Capital(Q: Dec. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(349.806+0.75 * 140.012+0.5 * 0-714.154
-107.45-0)/30.332
=-12.09

* 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.


Virtusa  (NAS:VRTU) 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.


Virtusa Net-Net Working Capital Related Terms

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


Virtusa (Virtusa) Business Description

Industry
Traded in Other Exchanges
N/A
Address
132 Turnpike Road, Suite 300, Southborough, MA, USA, 01772
Virtusa Corp provides a range of information technology, or IT, services. The company organizes its services into three categories: business and IT consulting, technology implementation, and application outsourcing. The business and IT consulting services include IT assessment and planning, network architecture and design, and governance-related services. Technology implementation services include application development, legacy asset management, information management, and testing. Application outsourcing services include application and platform management, infrastructure management, and software quality assurance management. The company generates the majority of revenue from North America.
Executives
Patricia Morrison director ONE BAXTER PARKWAY, DEERFIELD IL 60015
Ranjan Kalia officer: EVP & Chief Financial Officer C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Abidali Neemuchwala director C/O VIRTUSA CORPORATION, 132 TURNPIKE RD, STE. 300, SOUTHBOROUGH MA 01772
Sundararajan Narayanan officer: EVP, CPO and Global Head of HR C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Samir Dhir officer: President & Head of Americas C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Kris A Canekeratne director, officer: Chairman & CEO 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Thomas R Holler officer: EVP and CSO 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Roger Keith Modder officer: EVP, COO & MD EMEA 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Rowland T Moriarty director 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Orogen Holdings Llc director ONE ROCKEFELLER PLAZA, SUITE 2416, NEW YORK NY 10020
Barry R Nearhos director C/O VIRTUSA CORPORATION, 200 WEST PARK DRIVE, WESTBOROUGH MA 01581
Atairos-orogen Holdings, Llc director C/O ATAIROS MANAGEMENT, L.P., 40 MORRIS ROAD, BRYN MAWR PA 19010
Orogen Group Llc director ONE ROCKEFELLER PLAZA, SUITE 2416, NEW YORK NY 10020
Atairos Partners, L.p. director 40 MORRIS AVENUE, BRYN MAWR PA 19010
Atairos Partners Gp, Inc. director 40 MORRIS AVENUE, BRYN MAWR PA 19010

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