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TRW Automotive Holdings (FRA:TQT) Net-Net Working Capital : €-30.23 (As of Mar. 2015)


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What is TRW Automotive 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.

TRW Automotive Holdings's Net-Net Working Capital for the quarter that ended in Mar. 2015 was €-30.23.

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

FRA:TQT's Price-to-Net-Net-Working-Capital is not ranked *
in the Vehicles & Parts industry.
Industry Median: 8.27
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

TRW Automotive Holdings Net-Net Working Capital Historical Data

The historical data trend for TRW Automotive 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.

* Premium members only.

TRW Automotive Holdings Net-Net Working Capital Chart

TRW Automotive Holdings 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 -24.19 -22.81 -23.02 -23.21 -29.11

TRW Automotive Holdings Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 -26.56 -27.02 -28.01 -29.11 -30.23

Competitive Comparison of TRW Automotive Holdings's Net-Net Working Capital

For the Auto Parts subindustry, TRW Automotive 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.

TRW Automotive Holdings's Price-to-Net-Net-Working-Capital Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, TRW Automotive Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


TRW Automotive Holdings Net-Net Working Capital Calculation

TRW Automotive Holdings'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)
=(836.141+0.75 * 1972.352+0.5 * 788.292-5884.616
-0-158.956)/114.547
=-29.11

TRW Automotive Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2015 is calculated as

Net-Net Working Capital(Q: Mar. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(939.708+0.75 * 2383.92+0.5 * 903.672-6468.924
-0-173.712)/114.547
=-30.23

* 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.

TRW Automotive Holdings  (FRA:TQT) 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.

TRW Automotive Holdings Net-Net Working Capital Related Terms

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TRW Automotive Holdings (FRA:TQT) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » TRW Automotive Holdings Corp (FRA:TQT) » Definitions » Net-Net Working Capital
Comparable Companies
SHSE:600741 TSE:5802 LKQ TSE:7259 XPAR:FR BWA TSE:7276 SZSE:002602 SHSE:600660 LEA ALV GNTX XTER:SHA TSX:MG XPAR:EO WBC SZSE:002555 BOM:500530 XTER:HLE MIL:PIRC
Traded in Other Exchanges
N/A
Address
Website
http://www.trw.com
TRW Automotive Holdings Corp is a Delaware corporation formed in 2002. The Company is a supplier of automotive systems, modules and components to automotive original equipment manufacturers and related aftermarkets. It conducts substantially all of its operations through subsidiaries. These operations encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (braking and steering) and electronics (driver assistance systems), and passive safety related products and systems principally refer to occupant restraints (airbags and seat belts) and electronics (airbag electronic control units, and crash and occupant weight sensors). It operates its business in four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. The Chassis Systems segment focuses on the design, manufacture and sale of products and systems relating to braking, steering, modules, and linkage and suspension. It sells its Chassis Systems products and systems to OEMs and other Tier 1 suppliers. The Occupant Safety Systems segment focuses on the design, manufacture and sale of products and systems relating to airbags, seat belts, and steering wheels. It sells its Occupant Safety Systems products and systems to OEMs and other Tier 1 suppliers. It also sells these products and systems to OEM service organizations. The Electronics segment focuses on the design, manufacture and sale of electronics components and systems in the areas of safety, chassis, radio frequency, powertrain, and driver assistance systems, including cameras and radars. It sells its Electronics products and systems to OEMs and to its Chassis Systems segment (braking and steering applications). It also sells these products and systems to OEM service organizations. The Automotive Components segment focuses on the design, manufacture and sale of body controls, engine valves, and engineered fasteners and components. It sells its Automotive Components products to OEMs and other Tier 1 suppliers, and to certain non-automotive markets and customers. It also sells these products to OEM service organizations. In addition, it sells some engine valve and body control products to independent distributors for the automotive aftermarket. The Company's principal competitors include Advics, Bosch, Continental, JTEKT, Nexteer and ZF in the Chassis Systems segment; Autoliv, Key Safety, and Takata in the Occupant Safety Systems segment; Autoliv, Bosch, Continental, Delphi, Denso, and Magna in the Electronics segment; and Delphi, Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the Automotive Components segment. Its operations are subject to a variety of federal, state, local and international laws and regulations which may have a direct or indirect effect on its business.

TRW Automotive Holdings (FRA:TQT) Headlines

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