GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Salmon River Resources Ltd (OTCPK:SALOF) » Definitions » Net-Net Working Capital

Salmon River Resources (Salmon River Resources) Net-Net Working Capital : $-0.23 (As of Mar. 2013)


View and export this data going back to 2015. Start your Free Trial

What is Salmon River Resources 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.

Salmon River Resources's Net-Net Working Capital for the quarter that ended in Mar. 2013 was $-0.23.

The industry rank for Salmon River Resources's Net-Net Working Capital or its related term are showing as below:

SALOF's Price-to-Net-Net-Working-Capital is not ranked *
in the Metals & Mining industry.
Industry Median: 5.88
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Salmon River Resources Net-Net Working Capital Historical Data

The historical data trend for Salmon River Resources'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.

Salmon River Resources Net-Net Working Capital Chart

Salmon River Resources Annual Data
Trend Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.02 0.01 - 0.02 -0.20

Salmon River Resources Quarterly Data
Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13
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 -0.08 -0.20 -0.22 -0.23 -0.23

Competitive Comparison of Salmon River Resources's Net-Net Working Capital

For the Other Industrial Metals & Mining subindustry, Salmon River Resources'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.


Salmon River Resources's Price-to-Net-Net-Working-Capital Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Salmon River Resources's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Salmon River Resources's Price-to-Net-Net-Working-Capital falls into.



Salmon River Resources Net-Net Working Capital Calculation

Salmon River Resources's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2012 is calculated as

Net-Net Working Capital(A: Jun. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.005+0.75 * 0.155+0.5 * 0-9.455
-0-0)/46.0178
=-0.20

Salmon River Resources's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2013 is calculated as

Net-Net Working Capital(Q: Mar. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.003+0.75 * 0.096+0.5 * 0-10.861
-0-0)/46.0178
=-0.23

* 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.


Salmon River Resources  (OTCPK:SALOF) 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.


Salmon River Resources Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Salmon River Resources's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Salmon River Resources (Salmon River Resources) Business Description

Traded in Other Exchanges
N/A
Address
An exploration stage Company engaged in the evaluation, acquisition, exploration and development of gold and base metals in British Columbia, Canada, and Idaho, USA.

Salmon River Resources (Salmon River Resources) Headlines

No Headlines