Krones AG (XSWX:KRN) Net-Net Working Capital

: CHF-35.92 (As of Mar. 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.

Krones AG's Net-Net Working Capital for the quarter that ended in Mar. 2023 was CHF-35.92.

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

XSWX:KRN's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Industrial Products industry.
Industry Median: 7.07
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Krones AG Net-Net Working Capital Historical Data

The historical data trend for Krones AG'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.

Krones AG Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Net-Net Working Capital

-11.08

-28.30

-32.74

-31.69

-31.13

Krones AG Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23
Net-Net Working Capital																-31.13	-29.10	-31.10	-30.45	-35.92

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Krones AG'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.

Annual Data Quarterly Data

Krones AG Net-Net Working Capital Distribution

For the Industrial Products industry and Industrials sector, Krones AG's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Krones AG'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.

Krones AG Net-Net Working Capital Calculation

Krones AG's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2021 is calculated as

	Net-Net Working Capital		(A: Dec. 2021 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(398.966	+	0.75 * 773.563	+	0.5 * 451.242	-	2188.809
-	0	-	-0.58)	/	31.5931
=	-31.13

Krones AG's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(Q: Mar. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(638.833	+	0.75 * 825.518	+	0.5 * 597.116	-	2691.382
-	0	-	0)	/	31.5931
=	-35.92

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.

Krones AG (XSWX:KRN) 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.

Krones AG Net-Net Working Capital Related Terms

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Krones AG (XSWX:KRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Krones AG (XSWX:KRN) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

KRNTY:USA KRND:UK 0LQ4:UK KRN:Germany

Address

Bohmerwaldstrasse 5, Neutraubling, BY, DEU, 93073

Website

https://www.krones.com

Krones AG offers machinery and systems for filling, packaging, and producing beverages. Part of its product portfolio is information technology and planning associated with logistics and production lines. In addition to packaging, the company has cellar systems to treat and store sensitive beverages. Krones has two reportable segments: product filling and decoration, which is the highest revenue segment, and machines and lines for beverage production and process technology segment. Its customer base includes companies in the beverage, food, chemical, pharmaceutical, and cosmetic industries, but beverage companies account for most of the Krones' revenue. While the company has a global presence, Germany remains the central location for the development of machines, lines, and services.

Krones AG (XSWX:KRN) Headlines

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