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Dynamic Group Holdings (ASX:DDB) Net-Net Working Capital : A$-0.15 (As of Dec. 2023)


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What is Dynamic Group Holdings 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.

Dynamic Group Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2023 was A$-0.15.

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

ASX:DDB's Price-to-Net-Net-Working-Capital is not ranked *
in the Construction industry.
Industry Median: 5.52
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Dynamic Group Holdings Net-Net Working Capital Historical Data

The historical data trend for Dynamic Group Holdings'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.

Dynamic Group Holdings Net-Net Working Capital Chart

Dynamic Group Holdings Annual Data
Trend Jun21 Jun22 Jun23
Net-Net Working Capital
-0.01 -0.19 -0.23

Dynamic Group Holdings Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Net-Net Working Capital Get a 7-Day Free Trial -0.13 -0.19 -0.25 -0.23 -0.15

Competitive Comparison of Dynamic Group Holdings's Net-Net Working Capital

For the Engineering & Construction subindustry, Dynamic Group Holdings'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.


Dynamic Group Holdings's Price-to-Net-Net-Working-Capital Distribution in the Construction Industry

For the Construction industry and Industrials sector, Dynamic Group Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Dynamic Group Holdings Net-Net Working Capital Calculation

Dynamic Group Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2023 is calculated as

Net-Net Working Capital(A: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(12.145+0.75 * 15.175+0.5 * 7.4-58.49
-0-0)/134.553
=-0.23

Dynamic Group Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.282+0.75 * 10.968+0.5 * 6.637-42.487
-0-0)/138.238
=-0.15

* 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.


Dynamic Group Holdings  (ASX:DDB) 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.


Dynamic Group Holdings Net-Net Working Capital Related Terms

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Dynamic Group Holdings (ASX:DDB) Business Description

Traded in Other Exchanges
N/A
Address
76 Hasler Road, Level 2, Osborne Park, WA, AUS, 6017
Dynamic Group Holdings Ltd, formerly Dynamic Drill and Blast Holdings Ltd is engaged in providing drill and blast services. The firm generates its revenue from mine production drilling and blasting for resource extraction and construction project drilling and blasting for mine development purposes through the supply of labor, drilling equipment, and services and explosives equipment and services.

Dynamic Group Holdings (ASX:DDB) Headlines

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