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.
Archer-Daniels Midland Co's net-net working capital per share for the quarter that ended in Dec. 2022 was $-40.93.
The industry rank for Archer-Daniels Midland Co's Net-Net Working Capital or its related term are showing as below:
Archer-Daniels Midland Co Net-Net Working Capital Historical Data
The historical data trend for Archer-Daniels Midland 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.
Archer-Daniels Midland Co Annual Data
Trend
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Net-Net Working Capital
-24.04
-30.33
-36.79
-39.48
-40.93
Archer-Daniels Midland Co Quarterly Data
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Net-Net Working Capital
-39.48
-48.12
-42.88
-40.19
-40.93
Competitive Comparison
For the Farm Products subindustry, Archer-Daniels Midland Co's Net-Net Working Capital, along with its competitors' market caps and 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.
Archer-Daniels Midland Co Net-Net Working Capital Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels Midland Co's Net-Net Working Capital distribution charts can be found below:
* The bar in red indicates where Archer-Daniels Midland Co's Net-Net Working Capital falls in comparison to its industry or sector. The grey bar indicates the Net-Net Working Capital's extreme value range as defined by GuruFocus.
Archer-Daniels Midland Co Net-Net Working Capital Calculation
Archer-Daniels Midland Co's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2022 is calculated as
* 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.
** Note that the Cash And Cash Equivalents here include cash, cash equivalents and short-term investments.
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.
Archer-Daniels Midland Co (NYSE:ADM) 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. GuruFocus also publishes a monthly Net-Net newsletter.
Archer-Daniels Midland Co Net-Net Working Capital Related Terms
Thank you for viewing the detailed overview of Archer-Daniels Midland Co's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.
Archer-Daniels Midland Co (NYSE:ADM) Business Description
Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the company owns an extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients. The company is also a large producer of corn-based sweeteners, starches, and ethanol.
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