Quality RO Industries (BOM:543460) Net-Net Working Capital : ₹-3.54 (As of Sep. 2023)

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What is Quality RO Industries 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.

Quality RO Industries's Net-Net Working Capital for the quarter that ended in Sep. 2023 was ₹-3.54.

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

BOM:543460's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Industrial Products industry.
Industry Median: 7
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Quality RO Industries Net-Net Working Capital Historical Data

The historical data trend for Quality RO Industries'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.

Quality RO Industries Net-Net Working Capital Chart

Quality RO Industries Annual Data

Trend

Mar22

Mar23

Net-Net Working Capital

-0.19

12.01

Quality RO Industries Semi-Annual Data
	Sep21	Mar22	Sep22	Mar23	Sep23
Net-Net Working Capital	-	-0.19	1.38	12.01	-3.54

Competitive Comparison of Quality RO Industries's Net-Net Working Capital

For the Pollution & Treatment Controls subindustry, Quality RO Industries'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.

Quality RO Industries's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Quality RO Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Quality RO Industries Net-Net Working Capital Calculation

Quality RO Industries's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(A: Mar. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(45.817	+	0.75 * 16.444	+	0.5 * 4.246	-	29.658
-	0	-	0)	/	2.55
=	12.01

Quality RO Industries's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

	Net-Net Working Capital		(Q: Sep. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.456	+	0.75 * 28.162	+	0.5 * 48.448	-	55.823
-	0	-	0)	/	2.55
=	-3.54

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.

Quality RO Industries (BOM:543460) 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.

Quality RO Industries Net-Net Working Capital Related Terms

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Quality RO Industries (BOM:543460) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Quality RO Industries Ltd (BOM:543460) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. 09, POR Industrial Park, NH 08 Behind Sahayog Hotel, Village PO, Vadodara, GJ, IND, 391243

Website

https://www.qualityro.in

Quality RO Industries Ltd is engaged in the business of manufacturing, marketing, and supplying components for water purifiers and softener equipment. These water purifier parts have been designed to make a proper fit for RO plants and systems of different varieties, as we produce strictly according to industry standards. The company is at present engaged in the business of Trading and Manufacturing RO products and Transportation activities, which constitute two business segments. The prime revenue generator is the trading and manufacturing of the RO products segment.

Quality RO Industries (BOM:543460) Headlines

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