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Vroom (VRM) Net-Net Working Capital : $-594.52 (As of Jun. 2024)


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What is Vroom 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.

Vroom's Net-Net Working Capital for the quarter that ended in Jun. 2024 was $-594.52.

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

VRM's Price-to-Net-Net-Working-Capital is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.715
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Vroom Net-Net Working Capital Historical Data

The historical data trend for Vroom'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.

Vroom Net-Net Working Capital Chart

Vroom Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial -563.08 487.31 71.80 -320.39 -627.88

Vroom Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -514.17 -599.62 -627.88 -595.77 -594.52

Competitive Comparison of Vroom's Net-Net Working Capital

For the Auto & Truck Dealerships subindustry, Vroom'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.


Vroom's Price-to-Net-Net-Working-Capital Distribution in the Vehicles & Parts Industry

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

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



Vroom Net-Net Working Capital Calculation

Vroom's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(140.07+0.75 * 9.139+0.5 * 163.25-1353.271
-0-0)/1.79129
=-627.88

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

Net-Net Working Capital(Q: Jun. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(63.393+0.75 * 0+0.5 * 0-1137.567
-0-0)/1.80678
=-594.52

* 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.


Vroom  (NAS:VRM) 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.


Vroom Net-Net Working Capital Related Terms

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


Vroom Business Description

Traded in Other Exchanges
N/A
Address
3600 West Sam Houston Parkway South, Floor 4, Houston, TX, USA, 77042
Vroom Inc is an end-to-end e-commerce platform for the used vehicles industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its three reportable segments are: The E-commerce segment represents retail sales of used vehicles through its e-commerce platform and fees earned on sales of value-added products associated with those vehicle sales, The Wholesale segment represents sales of used vehicles through wholesale channels, and The Retail Financing segment represents UACC's operations with its network of third-party dealership customers.
Executives
Agnieszka Zakowicz officer: Principal Accounting Officer C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Patricia Moran officer: See remarks GREENHILL & CO., 300 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Carol Denise Stott officer: See remarks C/O VROOM, INC., 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Thomas H Shortt officer: Chief Operating Officer C/O VROOM INC, 1375 BROADWAY, 11TH FLOOR, NEW YORK NY 10018
Robert R. Krakowiak officer: Chief Financial Officer 633 NATALIE LANE, NORTHVILLE MI 48167
Mylod Robert J Jr director
Laura W Lang director DIGITAS INC., 800 BOYLSTON STREET, BOSTON MA 02199
Timothy M Crow director 2455 PACES FERRY ROAD, NW, ATLANTA GA 30339
Paul J. Hennessy director, officer: Chief Executive Officer C/O SHUTTERSTOCK, INC., 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118
Catterton Management Company, L.l.c. director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
David K. Jones officer: Chief Financial Officer 1375 BROADWAY, FLOOR 11, NEW YORK NY 10018
Scott Arnold Dahnke director, 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Cgp2 Lone Star, L.p. 10 percent owner 599 WEST PUTNAM AVENUE, GREENWICH CT 06930
Frederick Terrell director 17 STATE STREET, NEW YORK NY 10004
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067

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