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3M Co (FRA:MMM)
Net Cash
€-16.84 (As of Sep. 2014)

Net cash per share is calculated as Cash and Cash Equivalents minus Total Liabilities and then divided by Shares Outstanding. 3M Co's net cash per share for the quarter that ended in Sep. 2014 was €-16.84.


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.

3M Co's Net Cash Per Share for the fiscal year that ended in Dec. 2013 is calculated as

Net Cash Per Share (A: Dec. 2013 )=(Cash and Cash Equivalents-Total Liabilities)/Shares Outstanding
=(2432.21574344-11696.7930029)/663.30
=-13.97

3M Co's Net Cash Per Share for the quarter that ended in Sep. 2014 is calculated as

Net Cash Per Share (Q: Sep. 2014 )=(Cash and Cash Equivalents-Total Liabilities)/Shares Outstanding
=(2091.54383243-12880.5275407)/640.82
=-16.84

* 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.

3M Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
netcash -7.26-10.13-9.68-10.16-14.62-10.33-10.63-13.68-13.06-13.97

3M Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
netcash -13.87-13.25-13.06-12.95-13.31-13.90-13.97-14.68-15.45-16.84
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