Ventia Services Group (ASX:VNT) Net-Net Working Capital : A$-2.07 (As of Dec. 2023)

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What is Ventia Services Group 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.

Ventia Services Group's Net-Net Working Capital for the quarter that ended in Dec. 2023 was A$-2.07.

The industry rank for Ventia Services Group's Net-Net Working Capital or its related term are showing as below:

ASX:VNT's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Construction industry.
Industry Median: 5.47
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Ventia Services Group Net-Net Working Capital Historical Data

The historical data trend for Ventia Services Group'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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Ventia Services Group Net-Net Working Capital Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Net-Net Working Capital

-2.24

-1.66

-2.07

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Net-Net Working Capital	-2.24	-1.75	-1.66	-1.63	-2.07

Competitive Comparison of Ventia Services Group's Net-Net Working Capital

For the Infrastructure Operations subindustry, Ventia Services Group'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.

Ventia Services Group's Price-to-Net-Net-Working-Capital Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's Price-to-Net-Net-Working-Capital falls into.

Ventia Services Group Net-Net Working Capital Calculation

Ventia Services Group'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)
=	(338.7	+	0.75 * 312.2	+	0.5 * 46.8	-	2363.4
-	0	-	0)	/	855.484
=	-2.07

Ventia Services Group'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)
=	(338.7	+	0.75 * 312.2	+	0.5 * 46.8	-	2363.4
-	0	-	0)	/	855.484
=	-2.07

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.

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group Net-Net Working Capital Related Terms

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Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Net-Net Working Capital

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.