GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Abakan Inc (OTCPK:ABKI) » Definitions » Net-Net Working Capital

Abakan (Abakan) Net-Net Working Capital : $-0.14 (As of May. 2015)


View and export this data going back to . Start your Free Trial

What is Abakan 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.

Abakan's Net-Net Working Capital for the quarter that ended in May. 2015 was $-0.14.

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

ABKI's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.27
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Abakan Net-Net Working Capital Historical Data

The historical data trend for Abakan'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.

Abakan Net-Net Working Capital Chart

Abakan Annual Data
Trend May07 May08 May09 May10 May11 May12 May13 May14 May15
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only -0.03 -0.12 -0.14 -0.14 -0.14

Abakan Quarterly Data
Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15
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 -0.14 -0.15 -0.10 -0.12 -0.14

Competitive Comparison of Abakan's Net-Net Working Capital

For the Specialty Chemicals subindustry, Abakan'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.


Abakan's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Abakan's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Abakan Net-Net Working Capital Calculation

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

Net-Net Working Capital(A: May. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.023+0.75 * 0.067+0.5 * 0.035-11.411
-0-0.013)/79.5011
=-0.14

Abakan's Net-Net Working Capital (NNWC) per share for the quarter that ended in May. 2015 is calculated as

Net-Net Working Capital(Q: May. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.023+0.75 * 0.067+0.5 * 0.035-11.411
-0-0.013)/79.5011
=-0.14

* 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.


Abakan  (OTCPK:ABKI) 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.


Abakan Net-Net Working Capital Related Terms

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


Abakan (Abakan) Business Description

Traded in Other Exchanges
N/A
Address
Abakan Inc manufactures and markets nano-composite materials, fabricated metal products, engineered metal composites and engineered reactive materials. These have applications in the oil and gas, petrochemical, mining, aerospace and defense, energy, infrastructure, and processing industries. Its technology portfolio includes metal cladding technology, long-life nano-composite anti-corrosion and wear coating materials, metal composites, and dissolvable materials. It offers a family of nano-composite thermal spray coating materials known as PComP. The company's revenues are comprised of sales of PComP powder along with thermal spray application services, research and development grants and equipment sale and lease income.

Abakan (Abakan) Headlines

No Headlines