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Fareast Finance & Investment (DHA:FAREASTFIN) Net-Net Working Capital : BDT-62.84 (As of Sep. 2020)


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What is Fareast Finance & Investment 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.

Fareast Finance & Investment's Net-Net Working Capital for the quarter that ended in Sep. 2020 was BDT-62.84.

The industry rank for Fareast Finance & Investment's Net-Net Working Capital or its related term are showing as below:

DHA:FAREASTFIN's Price-to-Net-Net-Working-Capital is not ranked *
in the Credit Services industry.
Industry Median: 5.99
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Fareast Finance & Investment Net-Net Working Capital Historical Data

The historical data trend for Fareast Finance & Investment'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.

Fareast Finance & Investment Net-Net Working Capital Chart

Fareast Finance & Investment Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Net-Net Working Capital
Get a 7-Day Free Trial -64.59 -63.48 -72.21 -61.62 -60.18

Fareast Finance & Investment Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -63.49 -60.18 -61.71 -63.53 -62.84

Competitive Comparison of Fareast Finance & Investment's Net-Net Working Capital

For the Credit Services subindustry, Fareast Finance & Investment'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.


Fareast Finance & Investment's Price-to-Net-Net-Working-Capital Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Fareast Finance & Investment's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Fareast Finance & Investment's Price-to-Net-Net-Working-Capital falls into.



Fareast Finance & Investment Net-Net Working Capital Calculation

Fareast Finance & Investment's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2019 is calculated as

Net-Net Working Capital(A: Dec. 2019 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(543.119+0+0.75 * 0+0.5 * 0-10417.123
-0-0)/164.063
=-60.18

Fareast Finance & Investment's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2020 is calculated as

Net-Net Working Capital(Q: Sep. 2020 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(778.771+0+0.75 * 0+0.5 * 0-11088.447
-0-0)/164.063
=-62.84

* 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.


Fareast Finance & Investment  (DHA:FAREASTFIN) 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.


Fareast Finance & Investment Net-Net Working Capital Related Terms

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Fareast Finance & Investment (DHA:FAREASTFIN) Business Description

Traded in Other Exchanges
N/A
Address
52-53, Dilkusha Commercial Area, Eunoos Centre, 8th level, Dhaka, BGD, 1000
Fareast Finance & Investment Ltd provides lease and term finances. It also provides short-term finance, factoring and bond discount and among others. The company's services include Lease Finance, Term Finance, Short Term Finance and Factoring. It include services to clients for all types of machinery, equipment, household durables including vehicle for the purpose of industrial, commercial and personal.

Fareast Finance & Investment (DHA:FAREASTFIN) Headlines

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