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# Net-Net Working Capital

: \$0.00 (As of . 20)
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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.

's net-net working capital per share for the quarter that ended in . 20 was \$0.00.

## 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.

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 Annual Data Net-Net Working Capital

 Semi-Annual Data Net-Net Working Capital

## Net-Net Working Capital Calculation

's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in . 20 is calculated as

 Net-Net Working Capital Per Share (A: . 20 ) = (Cash And Cash Equivalents + 0.75 * Accounts Receivable + 0.5 * Total Inventories - Total Liabilities - Preferred Stock - Minority Interest) / Shares Outstanding (EOP) = ( + 0.75 * + 0.5 * - N/A - - ) / 0 = N/A

's Net-Net Working Capital (NNWC) per share for the quarter that ended in . 20 is calculated as

 Net-Net Working Capital Per Share (Q: . 20 ) = (Cash And Cash Equivalents + 0.75 * Accounts Receivable + 0.5 * Total Inventories - Total Liabilities - Preferred Stock - Minority Interest) / Shares Outstanding (EOP) = ( + 0.75 * + 0.5 * - N/A - - ) / 0 = N/A

* 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.

(:) 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.

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