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Escorts Kubota (NSE:ESCORTS) Net-Net Working Capital : ₹248.49 (As of Mar. 2024)


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What is Escorts Kubota 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.

Escorts Kubota's Net-Net Working Capital for the quarter that ended in Mar. 2024 was ₹248.49.

The industry rank for Escorts Kubota's Net-Net Working Capital or its related term are showing as below:

NSE:ESCORTS's Price-to-Net-Net-Working-Capital is ranked worse than
68.85% of 61 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.93 vs NSE:ESCORTS: 15.34

Escorts Kubota Net-Net Working Capital Historical Data

The historical data trend for Escorts Kubota'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.

Escorts Kubota Net-Net Working Capital Chart

Escorts Kubota Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.96 135.45 323.68 129.09 248.49

Escorts Kubota Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 129.09 - 207.24 - 248.49

Competitive Comparison of Escorts Kubota's Net-Net Working Capital

For the Farm & Heavy Construction Machinery subindustry, Escorts Kubota'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.


Escorts Kubota's Price-to-Net-Net-Working-Capital Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Escorts Kubota's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Escorts Kubota's Price-to-Net-Net-Working-Capital falls into.



Escorts Kubota Net-Net Working Capital Calculation

Escorts Kubota's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2024 is calculated as

Net-Net Working Capital(A: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(32963.9+0.75 * 11731.8+0.5 * 12181-20945.2
-0--39.1)/108.442
=248.49

Escorts Kubota's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(32963.9+0.75 * 11731.8+0.5 * 12181-20945.2
-0--39.1)/108.442
=248.49

* 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.


Escorts Kubota  (NSE:ESCORTS) 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.


Escorts Kubota Net-Net Working Capital Related Terms

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Escorts Kubota (NSE:ESCORTS) Business Description

Traded in Other Exchanges
Address
15/5, Mathura Road, Faridabad, HR, IND, 121 003
Escorts Kubota Ltd is an Indian company manufacturing agricultural tractors and construction equipment. It manufactures engines for agricultural tractors, earth moving and material handling equipment, round and flat tubes, heating elements, and other machines. The company's operating segments include Agri machinery products, Construction equipment, Railway equipment, and Others. It generates maximum revenue from the Agri machinery products segment. Geographically, it derives a majority of its revenue from India. The company also trades in oils and lubricants, compressor accessories and spares, and others.

Escorts Kubota (NSE:ESCORTS) Headlines

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