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Vertiv Holdings Co (Vertiv Holdings Co) Net-Net Working Capital : $-10.31 (As of Mar. 2024)


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What is Vertiv Holdings Co 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.

Vertiv Holdings Co's Net-Net Working Capital for the quarter that ended in Mar. 2024 was $-10.31.

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

VRT's Price-to-Net-Net-Working-Capital is not ranked *
in the Industrial Products industry.
Industry Median: 7.035
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Vertiv Holdings Co Net-Net Working Capital Historical Data

The historical data trend for Vertiv Holdings Co'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.

Vertiv Holdings Co Net-Net Working Capital Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial -0.35 -8.15 -9.64 -9.45 -8.18

Vertiv Holdings Co 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 -9.19 -8.80 -8.45 -8.18 -10.31

Competitive Comparison of Vertiv Holdings Co's Net-Net Working Capital

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.


Vertiv Holdings Co's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Vertiv Holdings Co Net-Net Working Capital Calculation

Vertiv Holdings Co'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)
=(780.4+0.75 * 2185.2+0.5 * 884.3-5983.6
-0-0)/381.789
=-8.18

Vertiv Holdings Co'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)
=(275.8+0.75 * 2097.1+0.5 * 987.1-6198
-0-0)/373.969
=-10.31

* 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.


Vertiv Holdings Co  (NYSE:VRT) 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.


Vertiv Holdings Co Net-Net Working Capital Related Terms

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Vertiv Holdings Co (Vertiv Holdings Co) Business Description

Traded in Other Exchanges
Address
505 N. Cleveland Ave., Westerville, OH, USA, 43082
Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers' vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.
Executives
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Platinum Equity Partners Iv, L.p. director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iv, Llc director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Lim Cheryl H.j. officer: Chief Human Resources Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Joseph J Deangelo director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Michael J. Kitson officer: Chief Procurement Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
John F. Marion officer: EVP, Quality, VOS and Process 1050 DEARBORN DRIVE, COLUMBUS OH 43085
David Joseph Fallon officer: Chief Financial Officer 28213 VAN DYKE AVENUE, WARREN MI 48093