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Darden Restaurants Inc (NYSE:DRI)
Net Current Asset Value Per Share
$-35.58 (As of Feb. 2014)

In calculating the Net Current Asset Value (NCAV), 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. This is a conservative way of estimating the company’s value.

Darden Restaurants Inc's net current asset value per share for the quarter that ended in Feb. 2014 was $-35.58.


Definition

Darden Restaurants Inc's Net Current Asset Value (NCAV) per share for the fiscal year that ended in May. 2013 is calculated as

Net Current Asset Value(A: May. 2013 )
=(CashAndCashEquivalents-Total Liabilities+0.75 * Acct. Receivable+0.5 * Inventory)/Shares Outstanding
=(88.2-4877.4+0.75 * 85.4+0.5 * 356.9)/130.29
=-34.90

Darden Restaurants Inc's Net Current Asset Value (NCAV) per share for the quarter that ended in Feb. 2014 is calculated as

Net Current Asset Value(Q: Feb. 2014 )
=(CashAndCashEquivalents-Total Liabilities+0.75 * Acct. Receivable+0.5 * Inventory)/Shares Outstanding
=(127-5103.1+0.75 * 69+0.5 * 461)/131.93
=-35.58

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

In calculating the Net Current Asset Value (NCAV), 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. This is a conservative way of estimating the company’s value.


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. GuruFocus also publishes a monthly Net-Net newsletter.


Related Terms

Cash and Cash Equivalents, Total Liabilities, Accounts Receivable, Inventory, Net Cash


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Darden Restaurants Inc Annual Data

May04May05May06May07May08May09May10May11May12May13
NCAV -8.98-9.43-10.87-11.41-22.26-23.01-21.18-24.22-29.27-34.90

Darden Restaurants Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
NCAV -29.94-29.49-29.27-30.03-35.91-35.72-34.90-35.51-36.32-35.58
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