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Octopus Eclipse VCT 2 (LSE:OEC2) Net-Net Working Capital : £0.18 (As of Jul. 2012)


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What is Octopus Eclipse VCT 2 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.

Octopus Eclipse VCT 2's Net-Net Working Capital for the quarter that ended in Jul. 2012 was £0.18.

The industry rank for Octopus Eclipse VCT 2's Net-Net Working Capital or its related term are showing as below:

LSE:OEC2's Price-to-Net-Net-Working-Capital is not ranked *
in the industry.
Industry Median:
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Octopus Eclipse VCT 2 Net-Net Working Capital Historical Data

The historical data trend for Octopus Eclipse VCT 2'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.

Octopus Eclipse VCT 2 Net-Net Working Capital Chart

Octopus Eclipse VCT 2 Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12
Net-Net Working Capital
Get a 7-Day Free Trial 0.31 0.17 0.12 0.15 0.16

Octopus Eclipse VCT 2 Semi-Annual Data
Jul05 Jan06 Jul06 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12
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 0.18 0.14 0.13 0.16 0.18

Competitive Comparison of Octopus Eclipse VCT 2's Net-Net Working Capital

For the subindustry, Octopus Eclipse VCT 2'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.


Octopus Eclipse VCT 2's Price-to-Net-Net-Working-Capital Distribution in the Industry

For the industry and sector, Octopus Eclipse VCT 2's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Octopus Eclipse VCT 2's Price-to-Net-Net-Working-Capital falls into.



Octopus Eclipse VCT 2 Net-Net Working Capital Calculation

Octopus Eclipse VCT 2's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jan. 2012 is calculated as

Net-Net Working Capital(A: Jan. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(3.256+0.75 * 0+0.5 * 0-0.227
-0-0)/18.830
=0.16

Octopus Eclipse VCT 2's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2012 is calculated as

Net-Net Working Capital(Q: Jul. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(3.566+0.75 * 0+0.5 * 0-0.194
-0-0)/18.714
=0.18

* 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.


Octopus Eclipse VCT 2  (LSE:OEC2) 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.


Octopus Eclipse VCT 2 Net-Net Working Capital Related Terms

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Octopus Eclipse VCT 2 (LSE:OEC2) Business Description

Traded in Other Exchanges
N/A
Address
Octopus Eclipse VCT 2 PLC is a venture capital trust which aims to provide shareholders with attractive tax-free dividends and long-term capital growth, by investing in a diverse portfolio of unquoted and AIM-quoted companies.

Octopus Eclipse VCT 2 (LSE:OEC2) Headlines

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