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Brady Corp (NYSE:BRC)
Net Cash
$-9.46 (As of Jan. 2014)

Net cash per share is calculated as Cash and Cash Equivalents minus Total Liabilities and then divided by Shares Outstanding. Brady Corp's net cash per share for the quarter that ended in Jan. 2014 was $-9.46.


Definition

In the calculation of a company’s net cash, assets other than cash and short term investments are considered to be worth nothing. But the company has to pay its debt and other liabilities in full. This is an extremely conservative way of valuation. Most companies have negative net cash. But sometimes a company’s price may be lower than its net-cash.

Brady Corp's Net Cash Per Share for the fiscal year that ended in Jul. 2013 is calculated as

Net Cash Per Share (A: Jul. 2013 )=(Cash and Cash Equivalents-Total Liabilities)/Shares Outstanding
=(91.058-607.886)/52.17
=-9.91

Brady Corp's Net Cash Per Share for the quarter that ended in Jan. 2014 is calculated as

Net Cash Per Share (Q: Jan. 2014 )=(Cash and Cash Equivalents-Total Liabilities)/Shares Outstanding
=(79.116-574.61)/52.37
=-9.46

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Ben Graham invested in situations where the company’s stock price was lower than its net-cash. He assigned some value to the company’s other current asset. The value is called Net Current Asset Value (NCAV). 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.

You can find companies that are traded below their Net Current Asset Value (NCAV) with our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.


Related Terms

Cash and Cash Equivalents, Total Liabilities, Net Current Asset Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Brady Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
netcash -4.63-5.54-10.07-11.88-10.59-8.45-8.11-5.94-5.67-9.91

Brady Corp Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
netcash -5.98-5.12-4.60-5.67-5.66-11.84-11.07-9.91-10.30-9.46
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