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TE Connectivity (NYSE:TEL) Net-Net Working Capital

: $-17.73 (As of Jun. 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.

TE Connectivity's Net-Net Working Capital for the quarter that ended in Jun. 2023 was $-17.73.

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

TEL's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 7.08
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

TE Connectivity Net-Net Working Capital Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Net-Net Working Capital
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.42 -16.53 -18.62 -18.88 -16.99

TE Connectivity Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 -19.45 -16.99 -17.52 -18.62 -17.73
Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   
TE Connectivity Net-Net Working Capital Distribution

For the Hardware industry and Technology sector, TE Connectivity's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where TE Connectivity'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.


TE Connectivity Net-Net Working Capital Calculation

TE Connectivity's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2022 is calculated as

Net-Net Working Capital(A: Sep. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1088+0.75 * 2865+0.5 * 2676-9885
-0-95)/318.081
=-16.99

TE Connectivity's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2023 is calculated as

Net-Net Working Capital(Q: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1131+0.75 * 2998+0.5 * 2801-10245
-0-107)/314.199
=-17.73

* 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.

TE Connectivity  (NYSE:TEL) 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.

TE Connectivity Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of TE Connectivity's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

TE Connectivity (NYSE:TEL) Business Description

TE Connectivity logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » Net-Net Working Capital
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NYSE:APH NYSE:GLW NYSE:JBL NAS:FLEX NAS:OLED NAS:LFUS NYSE:FN NAS:SANM NAS:VICR NYSE:ROG TPE:2317 TSE:6981 SZSE:002475 TPE:2308 XKRX:006400 SZSE:000725 TSE:6762 SZSE:002179 HKSE:00285 TSE:6645
Traded in Other Exchanges
TEL:Mexico T1EL34:Brazil
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
Website
https://www.te.com
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Malavika Sagar officer: SVP, Chief Human Resources Off 1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu director 1050 WESTLAKES DRIVE, BERWYN PA 19312
Syaru Shirley Lin director
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock officer: President, Industrial Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko director C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau director COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson director
Laura Wright director 2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611