USD -31.23 as of today(2019-10-21). Costco Wholesale Net-Net Working Capital explanation, calculation, historical data and more" />Costco Wholesale Net-Net Working Capital | COST - GuruFocus.com
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Costco Wholesale Net-Net Working Capital

: USD -31.23 (As of Aug. 2019)
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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.

Costco Wholesale's net-net working capital per share for the quarter that ended in Aug. 2019 was USD -31.23.


Costco Wholesale Net-Net Working Capital Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Costco Wholesale Annual Data
Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
Net-Net Working Capital Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -26.20 -24.90 -31.46 -31.90 -31.30

Costco Wholesale Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
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 -31.90 -34.79 -33.42 -35.07 -31.23

Competitive Comparison
* 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.


Costco Wholesale Net-Net Working Capital Distribution

* The bar in red indicates where Costco Wholesale's Net-Net Working Capital falls into.



Costco Wholesale Net-Net Working Capital Calculation

Costco Wholesale's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Aug. 2019 is calculated as

Net-Net Working Capital Per Share(A: Aug. 2019 )
=(Cash And Cash Equivalents +0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(9444+0.75 * 1535+0.5 * 11395-29816
-0-341)/442.923
=-31.30

Costco Wholesale's Net-Net Working Capital (NNWC) per share for the quarter that ended in Aug. 2019 is calculated as

Net-Net Working Capital Per Share(Q: Aug. 2019 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(9444+0.75 * 1535+0.5 * 11395-29816
-0-341)/443.997
=-31.23

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Costco Wholesale  (NAS:COST) 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. GuruFocus also publishes a monthly Net-Net newsletter.


Costco Wholesale Net-Net Working Capital Related Terms

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