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LDK Solar Company, (FRA:LD41) Net-Net Working Capital : €-28.54 (As of Jun. 2015)


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What is LDK Solar Company, 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.

LDK Solar Company,'s Net-Net Working Capital for the quarter that ended in Jun. 2015 was €-28.54.

The industry rank for LDK Solar Company,'s Net-Net Working Capital or its related term are showing as below:

FRA:LD41's Price-to-Net-Net-Working-Capital is not ranked *
in the Semiconductors industry.
Industry Median: 8.29
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

LDK Solar Company, Net-Net Working Capital Historical Data

The historical data trend for LDK Solar Company,'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.

LDK Solar Company, Net-Net Working Capital Chart

LDK Solar Company, Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -20.73 -30.12 -24.72 -22.86 -26.19

LDK Solar Company, Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 -23.25 -22.86 -23.32 -26.19 -28.54

Competitive Comparison of LDK Solar Company,'s Net-Net Working Capital

For the Solar subindustry, LDK Solar Company,'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.


LDK Solar Company,'s Price-to-Net-Net-Working-Capital Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, LDK Solar Company,'s Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where LDK Solar Company,'s Price-to-Net-Net-Working-Capital falls into.



LDK Solar Company, Net-Net Working Capital Calculation

LDK Solar Company,'s Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

Net-Net Working Capital(A: Dec. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(14.538+0.75 * 70.437+0.5 * 90.458-4271.805
-0-0.105)/158.826
=-26.19

LDK Solar Company,'s Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2015 is calculated as

Net-Net Working Capital(Q: Jun. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(9.247+0.75 * 59.293+0.5 * 95.047-4632.759
-0-1.9)/158.826
=-28.54

* 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.


LDK Solar Company,  (FRA:LD41) 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.


LDK Solar Company, Net-Net Working Capital Related Terms

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LDK Solar Company, (FRA:LD41) Business Description

Traded in Other Exchanges
N/A
Address
Hi-Tech Industrial Park, Xinyu, Jiangxi, CHN, 338032
LDK Solar is a vertically integrated solar manufacturer active at multiple points of the supply chain. The company has one of the largest solar wafer production footprints in the world.

LDK Solar Company, (FRA:LD41) Headlines

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