Deterra Royalties (ASX:DRR) Net-Net Working Capital : A$0.10 (As of Dec. 2023)

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What is Deterra Royalties 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.

Deterra Royalties's Net-Net Working Capital for the quarter that ended in Dec. 2023 was A$0.10.

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

ASX:DRR's Price-to-Net-Net-Working-Capital is ranked worse than
97.62% of 923 companies
in the Metals & Mining industry
Industry Median: 5.5 vs ASX:DRR: 48.90

Deterra Royalties Net-Net Working Capital Historical Data

The historical data trend for Deterra Royalties'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.

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Deterra Royalties Net-Net Working Capital Chart

Deterra Royalties Annual Data

Trend

Jun21

Jun22

Jun23

Net-Net Working Capital

0.07

0.15

0.12

Deterra Royalties Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Net-Net Working Capital	Get a 7-Day Free Trial			0.08	0.15	0.08	0.12	0.10

Competitive Comparison of Deterra Royalties's Net-Net Working Capital

For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.

Deterra Royalties's Price-to-Net-Net-Working-Capital Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Deterra Royalties Net-Net Working Capital Calculation

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

	Net-Net Working Capital		(A: Jun. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(29.491	+	0.75 * 72.909	+	0.5 * 0	-	21.335
-	0	-	0)	/	528.54
=	0.12

Deterra Royalties's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

	Net-Net Working Capital		(Q: Dec. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(24.938	+	0.75 * 62.888	+	0.5 * 0	-	18.409
-	0	-	0)	/	528.65
=	0.10

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.

Deterra Royalties (ASX:DRR) 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.

Deterra Royalties Net-Net Working Capital Related Terms

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Deterra Royalties (ASX:DRR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Deterra Royalties Ltd (ASX:DRR) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

DETRF:USA

Address

140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.