Chilco River Holdings (Chilco River Holdings) Net-Net Working Capital : $-0.09 (As of Dec. 2006)

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What is Chilco River 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.

Chilco River Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2006 was $-0.09.

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

CRVH's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Diversified Financial Services industry.
Industry Median: 2
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Chilco River Holdings Net-Net Working Capital Historical Data

The historical data trend for Chilco River 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.

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Chilco River Holdings Net-Net Working Capital Chart

Chilco River Holdings Annual Data

Trend

Dec04

Dec05

Dec06

Net-Net Working Capital

0.03

-0.09

Chilco River Holdings Semi-Annual Data
	Dec04	Dec05	Dec06
Net-Net Working Capital	-	0.03	-0.09

Competitive Comparison of Chilco River Holdings's Net-Net Working Capital

For the Shell Companies subindustry, Chilco River 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.

Chilco River Holdings's Price-to-Net-Net-Working-Capital Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Chilco River Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Chilco River Holdings Net-Net Working Capital Calculation

Chilco River Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2006 is calculated as

	Net-Net Working Capital		(A: Dec. 2006 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.073	+	0.75 * 0.134	+	0.5 * 0.096	-	5.781
-	0	-	0)	/	48.3456
=	-0.09

Chilco River Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2006 is calculated as

	Net-Net Working Capital		(Q: Dec. 2006 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.073	+	0.75 * 0.134	+	0.5 * 0.096	-	5.781
-	0	-	0)	/	48.3456
=	-0.09

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.

Chilco River Holdings (OTCPK:CRVH) 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.

Chilco River Holdings Net-Net Working Capital Related Terms

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