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LegalZoom.com (LegalZoom.com) Net-Net Working Capital

: $-0.24 (As of Dec. 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.

LegalZoom.com's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $-0.24.

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

LZ's Price-to-Net-Net-Working-Capital is not ranked *
in the Business Services industry.
Industry Median: 6.345
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

LegalZoom.com Net-Net Working Capital Historical Data

The historical data trend for LegalZoom.com'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.

LegalZoom.com Annual Data
Trend Dec10 Dec11 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Premium Member Only Premium Member Only -5.59 -3.51 0.07 -0.34 -0.24

LegalZoom.com Quarterly Data
Dec11 Mar12 Jun12 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Net-Net Working Capital Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.34 -0.31 -0.16 -0.30 -0.24

Competitive Comparison

For the Specialty Business Services subindustry, LegalZoom.com'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.


LegalZoom.com Price-to-Net-Net-Working-Capital Distribution

For the Business Services industry and Industrials sector, LegalZoom.com's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



LegalZoom.com Net-Net Working Capital Calculation

LegalZoom.com'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)
=(225.719+0.75 * 11.738+0.5 * 0-278.984
-0-0)/188.538
=-0.24

LegalZoom.com'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)
=(225.719+0.75 * 11.738+0.5 * 0-278.984
-0-0)/188.538
=-0.24

* 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.

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. 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.


LegalZoom.com  (NAS:LZ) 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.


LegalZoom.com Net-Net Working Capital Related Terms

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LegalZoom.com (LegalZoom.com) Business Description

Traded in Other Exchanges
Address
101 North Brand Boulevard, 11th Floor, Glendale, CA, USA, 91203
LegalZoom.com Inc is an online provider of services that meet the legal needs of small businesses and consumers in the United States.
Executives
Richard Preece officer: COO and Chief Product Officer 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Nicole Miller officer: General Counsel 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Lucaszoom Llc director, 10 percent owner LUCASZOOM LLC, 3000 SAND HILL ROAD, BUILDING 1, SUITE 1, MENLO PARK CA 94025
Dipan Patel director, 10 percent owner LEGALZOOM.COM, INC., 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Daniel A Wernikoff director, officer: Chief Executive Officer C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Noel Bertram Watson officer: Chief Financial Officer 400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494
Shrisha Radhakrishna officer: Chief Technology Officer 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Neil Tolaney director TECHNOLOGY CROSSOVER MANAGEMENT, 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Sivan Whiteley director 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Elizabeth Hamren director 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Brian Ruder director, 10 percent owner LEGALZOOM.COM, INC., 101 NORTH BRAND BOULEVARD, 11TH FLOOR, GLENDALE CA 91203
Francisco Partners Management, Lp 10 percent owner ONE LETTERMAN DRIVE, BUILDING C, SUITE 410, SAN FRANCISCO CA 94129
Permira V L.p.2 director, 10 percent owner TRAFALGAR COURT, LES BANQUES, ST PETER PORT Y7 GY1 6DJ
Christine T Wang director ONE LETTERMAN DRIVE, BLDG C, STE 410, SAN FRANCISCO CA 94129
Khai Ha director C/O GPI CAPITAL, L.P., 1345 AVENUE OF THE AMERICAS, 32ND FLOOR, NEW YORK NY 10105