Beazer Homes USA (NYSE:BZH) Net-Net Working Capital

: $-3.25 (As of Jun. 2023)

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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.

Beazer Homes USA's Net-Net Working Capital for the quarter that ended in Jun. 2023 was $-3.25.

The industry rank for Beazer Homes USA's Net-Net Working Capital or its related term are showing as below:

BZH's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Homebuilding & Construction industry.
Industry Median: 5.30
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Beazer Homes USA Net-Net Working Capital Historical Data

The historical data trend for Beazer Homes USA'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.

Beazer Homes USA Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Net-Net Working Capital

-14.31

-17.46

-12.78

-10.77

-6.55

Beazer Homes USA Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Net-Net Working Capital																-11.89	-6.55	-6.21	-4.34	-3.25

Competitive Comparison

For the Residential Construction subindustry, Beazer Homes USA'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.

Annual Data Quarterly Data

Beazer Homes USA Net-Net Working Capital Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Beazer Homes USA's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Beazer Homes USA'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.

Beazer Homes USA Net-Net Working Capital Calculation

Beazer Homes USA's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2022 is calculated as

	Net-Net Working Capital		(A: Sep. 2022 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(214.594	+	0.75 * 35.89	+	0.5 * 1737.865	-	1312.677
-	0	-	0)	/	30.8801
=	-6.55

Beazer Homes USA's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2023 is calculated as

	Net-Net Working Capital		(Q: Jun. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(276.125	+	0.75 * 33.195	+	0.5 * 1741.651	-	1273.813
-	0	-	0)	/	31.3392
=	-3.25

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.

Beazer Homes USA (NYSE:BZH) 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.

Beazer Homes USA Net-Net Working Capital Related Terms

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Beazer Homes USA (NYSE:BZH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Beazer Homes USA Inc (NYSE:BZH) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

BE4A:Germany BE4A:Germany

Address

1000 Abernathy Road, Suite 260, Atlanta, GA, USA, 30328

Website

https://www.beazer.com

Beazer Homes USA Inc is an American construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in over 13 states and over 22 metro markets. Beazer Homes builds homes and communities that target first-time, move-up, and luxury homebuyers with an average selling price of roughly $300,000. From a geographic perspective, home sales in the western and eastern United States have been the leading sources of revenue for the company. Key metro areas include Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.

Executives

Lloyd Emerson Johnson	director	16737 NEW PROVIDENCE LANE, CHARLOTTE NC 28277
Pei Sun	officer: VP & Chief Accounting Officer	1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
David I Goldberg	officer: SVP, Chief Financial Officer	1000 ABERNATHY ROAD, NE, SUITE 260, ATLANTA GA 30328
C Christian Winkle	director	ONE RAVINIA DRIVE, STE 1500, ATLANTA GA 30346
David J Spitz	director	C/O CHANNELADVISOR CORPORATION, 2701 AERIAL CENTER PARKWAY, MORRISVILLE NC 27568
Belknap Keith L Jr	officer: EVP, General Counsel	3585 ENGINEERING DRIVE, SUITE 100, NORCROSS GA 30092
Peter M Orser	director	1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
Danny R Shepherd	director	VULCAN MATERIALS COMPANY, 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Kenneth F Khoury	officer: EVP, General Counsel	BEAZER HOMES, 1000 ABERNATHY RD, SUITE 1200, ATLANTA GA 30328
Robert L. Salomon	officer: EVP, Chief Financial Officer	5535 LEXINGTON WOODS LANE, ALPHARETTA GA 30005
Allan P Merrill	director, officer: President and CEO	BEAZER HOMES, 1000 ABERNATHY RD, SUITE 1200, ATLANTA GA 30328
Peter G Leemputte	director	CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Laurent Alpert	director
Elizabeth S Acton	director	5408 WALDENHILL COURT, SUPERIOR TOWNSHIP MI 48198
Norma Ann Provencio	director	2150 ST. ELZEAR BLVD. WEST, LAVAL A8 H7L 4A8