Cancer Prevention Pharmaceuticals (Cancer Prevention Pharmaceuticals) Net-Net Working Capital : $-3.14 (As of Mar. 2016)

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What is Cancer Prevention Pharmaceuticals 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.

Cancer Prevention Pharmaceuticals's Net-Net Working Capital for the quarter that ended in Mar. 2016 was $-3.14.

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

CPP's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Drug Manufacturers industry.
Industry Median: 7.83
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Cancer Prevention Pharmaceuticals Net-Net Working Capital Historical Data

The historical data trend for Cancer Prevention Pharmaceuticals'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.

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Cancer Prevention Pharmaceuticals Net-Net Working Capital Chart

Cancer Prevention Pharmaceuticals Annual Data

Trend

Dec13

Dec14

Dec15

Net-Net Working Capital

-2.90

Cancer Prevention Pharmaceuticals Quarterly Data
	Dec13	Dec14	Mar15	Sep15	Dec15	Mar16
Net-Net Working Capital	Get a 7-Day Free Trial			-	-	-	-2.90	-3.14

Competitive Comparison of Cancer Prevention Pharmaceuticals's Net-Net Working Capital

For the Drug Manufacturers - Specialty & Generic subindustry, Cancer Prevention Pharmaceuticals'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.

Cancer Prevention Pharmaceuticals's Price-to-Net-Net-Working-Capital Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Cancer Prevention Pharmaceuticals's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Cancer Prevention Pharmaceuticals Net-Net Working Capital Calculation

Cancer Prevention Pharmaceuticals's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2015 is calculated as

	Net-Net Working Capital		(A: Dec. 2015 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.481	+	0.75 * 0	+	0.5 * 0	-	23.032
-	0	-	0)	/	7.42991
=	-2.90

Cancer Prevention Pharmaceuticals's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2016 is calculated as

	Net-Net Working Capital		(Q: Mar. 2016 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(8.692	+	0.75 * 0	+	0.5 * 0	-	32.039
-	0	-	0)	/	7.42991
=	-3.14

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.

Cancer Prevention Pharmaceuticals (AMEX:CPP) 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.

Cancer Prevention Pharmaceuticals Net-Net Working Capital Related Terms

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Cancer Prevention Pharmaceuticals (Cancer Prevention Pharmaceuticals) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.canprevent.com

Cancer Prevention Pharmaceuticals Inc is a pharmaceutical company. It was originally incorporated under the laws of the state of Arizona on June 9, 2008, as Cancer Prevention Pharmaceuticals, LLC and on December 22, 2009, Cancer Prevention Pharmaceuticals, Inc. was incorporated in the state of Delaware. The Company currently operates mainly in the development and commercialization of compound CPP-1X, otherwise known as DFMO or eflornithine. It is involved in familial adenomatous polyposis, neuroblastoma and the prevention of recurrence in colon cancer survivors. However, CPP also has therapeutic prevention approaches for prostate cancer, breast cancer, and skin cancers which will be developed together with the National Cancer Institute (as resources become available in the future) and multiple academic partners. Its competitors are Marina Biotech, Inc., SLA Pharma AG, StemSynergy Therapeutics, Inc. and Thetis Pharmaceuticals LLC. The Company holds license to approximately six issued patents in the United States. The Company's activities are subject to risks and uncertainties including failure to obtain required regulatory approvals to market the products, once developed, in the USA or foreign markets.