Macau Legend Development (HKSE:01680) Net-Net Working Capital

: HK$-0.53 (As of Dec. 2022)

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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.

Macau Legend Development's Net-Net Working Capital for the quarter that ended in Dec. 2022 was HK$-0.53.

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

HKSE:01680's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Travel & Leisure industry.
Industry Median: 7.44
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Macau Legend Development Net-Net Working Capital Historical Data

The historical data trend for Macau Legend Development'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.

Macau Legend Development Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Net-Net Working Capital

-0.27

-0.31

-0.47

-0.54

-0.53

Macau Legend Development Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
Net-Net Working Capital																-0.47	-0.50	-0.54	-0.58	-0.53

Competitive Comparison

For the Resorts & Casinos subindustry, Macau Legend Development'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

Macau Legend Development Net-Net Working Capital Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Macau Legend Development's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Macau Legend Development'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.

Macau Legend Development Net-Net Working Capital Calculation

Macau Legend Development's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2022 is calculated as

	Net-Net Working Capital		(A: Dec. 2022 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(87.341	+	0.75 * 74.395	+	0.5 * 21.304	-	3442.168
-	0	-	0)	/	6201.19
=	-0.53

Macau Legend Development's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2022 is calculated as

	Net-Net Working Capital		(Q: Dec. 2022 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(87.341	+	0.75 * 74.395	+	0.5 * 21.304	-	3442.168
-	0	-	0)	/	6201.19
=	-0.53

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.

Macau Legend Development (HKSE:01680) 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.

Macau Legend Development Net-Net Working Capital Related Terms

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Macau Legend Development (HKSE:01680) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Macau Legend Development Ltd (HKSE:01680) » Definitions » Net-Net Working Capital

Traded in Other Exchanges

N/A

Address

Avenida da Amizade e Avenida da, Palace Building, Macau Fisherman’s Wharf, Dr. Sun Yat Sen, Macau, MAC

Website

http://www.macaulegend.com

Macau Legend Development Ltd is an investment holdings company. The company is one of the owners of entertainment and casino gaming facilities in Macau. The company currently has Macau Fisherman's Wharf operated by MFW Investment (MFW), which is a waterfront integrated gaming, hotel, convention and entertainment complex located on the Macau Peninsula. The company's businesses include 1) the provision of gaming services to SJM for the operation of Legend Palace Casino; 2) the operation of casino inside Savan Legend Resorts Hotel and Entertainment Complex in the Lao People's Democratic Republic (Lao PDR); and 3) the operation of hotels, entertainment and leisure facilities within its properties.

Macau Legend Development (HKSE:01680) Headlines

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