Telefonica Brasil (Telefonica Brasil) Net-Net Working Capital

: $-4.87 (As of Dec. 2023)

View and export this data going back to 1998. Start your Free Trial

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.

Telefonica Brasil's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $-4.87.

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

VIV's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 7.44
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Telefonica Brasil Net-Net Working Capital Historical Data

The historical data trend for Telefonica Brasil'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.

Telefonica Brasil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Net-Net Working Capital

Get a 7-Day Free Trial

-3.98

-3.10

-3.47

-4.76

-4.87

Telefonica Brasil Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Net-Net Working Capital	Get a 7-Day Free Trial															-4.62	-4.76	-4.89	-4.76	-4.87

Competitive Comparison

For the Telecom Services subindustry, Telefonica Brasil'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.

Telefonica Brasil Price-to-Net-Net-Working-Capital Distribution

For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Telefonica Brasil Net-Net Working Capital Calculation

Telefonica Brasil'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)
=	(889.715	+	0.75 * 1901.726	+	0.5 * 167.928	-	10431.173
-	0	-	12.353)	/	1652.58
=	-4.87

Telefonica Brasil'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)
=	(889.715	+	0.75 * 1901.726	+	0.5 * 167.928	-	10431.173
-	0	-	12.353)	/	1652.58
=	-4.87

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.

Telefonica Brasil (NYSE:VIV) 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.

Telefonica Brasil Net-Net Working Capital Related Terms

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

Telefonica Brasil (Telefonica Brasil) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica Brasil SA (NYSE:VIV) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

TSPA:Germany VIVT3:Brazil VIV:Argentina

Address

Avenida Engenheiro Luis Carlos Berrini, 1376, 32nd Floor, Sao Paulo, SP, BRA, 04571-936

Website

https://www.telefonica.com.br

Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 98 million customers, equal to about 40% market share. The firm is strongest in the postpaid business, where it has 60 million customers, about 42% share of this market. It is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. The firm provides internet access to 6 million households on this network. Following its parent Telefonica's footsteps, Vivo is cross-selling fixed-line and wireless services as a converged offering. The firm also sells pay-tv services to its fixed-line customers.