FRMO (FRMO) Net-Net Working Capital : $1.60 (As of May. 2014)

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What is FRMO 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.

FRMO's Net-Net Working Capital for the quarter that ended in May. 2014 was $1.60.

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

FRMO's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Asset Management industry.
Industry Median: 6.67
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

FRMO Net-Net Working Capital Historical Data

The historical data trend for FRMO'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.

FRMO Net-Net Working Capital Chart

FRMO Annual Data

Trend

Feb00

Feb01

Feb02

Feb03

Feb04

May12

May13

May14

Net-Net Working Capital

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1.37

1.56

1.60

FRMO Semi-Annual Data
	Feb00	Feb01	Feb02	Feb03	Feb04	May12	May13	May14
Net-Net Working Capital	Get a 7-Day Free Trial			-	-	1.37	1.56	1.60

Competitive Comparison of FRMO's Net-Net Working Capital

For the Asset Management subindustry, FRMO'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.

FRMO's Price-to-Net-Net-Working-Capital Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, FRMO's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

FRMO Net-Net Working Capital Calculation

FRMO's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in May. 2014 is calculated as

	Net-Net Working Capital		(A: May. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(85.927	+	0.75 * 0.595	+	0.5 * 0	-	16.393
-	0	-	0)	/	43.713
=	1.60

FRMO's Net-Net Working Capital (NNWC) per share for the quarter that ended in May. 2014 is calculated as

	Net-Net Working Capital		(Q: May. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(85.927	+	0.75 * 0.595	+	0.5 * 0	-	16.393
-	0	-	0)	/	43.713
=	1.60

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.

FRMO (OTCPK:FRMO) 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.

FRMO Net-Net Working Capital Related Terms

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FRMO (FRMO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » FRMO Corp (OTCPK:FRMO) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 North Lexington Avenue, Suite 12C, White Plains, NY, USA, 10601

Website

https://www.frmocorp.com

FRMO Corp is focused its activities on making strategic investments in public and private companies.

Executives

Steven Bregman	director, 10 percent owner, officer: President	HORIZON KINETICS LLC, 470 PARK AVENUE SOUTH, 4TH FLOOR SOUTH, NEW YORK NY 10016
Santa Monica Partners Lp	director	1865 PALMER AVENUE, LARCHMONT NY 10538
Lawrence J Goldstein	director	1865 PALMER AVE 108, LARCHMONT NY 10538
Jay P Hirschson	director	747 GREENWICH ST, SUITE 400, NEW YORK NY 10014
Murray Stahl	director, 10 percent owner, officer: CEO	C/O HORIZON KINETICS LLC, 470 PARK AVE S 8TH FL S, NEW YORK NY 10016
Peter Doyle	director, 10 percent owner, officer: Vice President, other: Secretary	470 PARK AVENUE SOUTH, 8TH FLOOR, NEW YORK NY 10016
Lester J Tanner	director, officer: Secretary	100 PARK AVENUE SUITE 3302, NEW YORK NY 10017
Allan Kornfeld	director	123 WILD DUNES WAY, JACKSON NJ 08527