GURUFOCUS.COM » STOCK LIST » Technology » Software » Zendesk Inc (NYSE:ZEN) » Definitions » Net-Net Working Capital

Zendesk (Zendesk) Net-Net Working Capital : $-5.07 (As of Sep. 2022)


View and export this data going back to 2014. Start your Free Trial

What is Zendesk Net-Net Working Capital?

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.

Zendesk's Net-Net Working Capital for the quarter that ended in Sep. 2022 was $-5.07.

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

ZEN's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.1
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Zendesk Net-Net Working Capital Historical Data

The historical data trend for Zendesk'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.

Zendesk Net-Net Working Capital Chart

Zendesk Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 -3.06 -4.22 -5.15 -6.09

Zendesk Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Net-Net Working Capital Get a 7-Day Free Trial 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 -6.29 -6.09 -6.89 -6.60 -5.07

Competitive Comparison of Zendesk's Net-Net Working Capital

For the Software - Application subindustry, Zendesk'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.


Zendesk's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, Zendesk's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Zendesk Net-Net Working Capital Calculation

Zendesk'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)
=(1015.883+0.75 * 273.898+0.5 * 0-1962.061
-0-0)/121.6
=-6.09

Zendesk's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2022 is calculated as

Net-Net Working Capital(Q: Sep. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1337.81+0.75 * 217.831+0.5 * 0-2129.296
-0-0)/123.9
=-5.07

* 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.


Zendesk  (NYSE:ZEN) 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.


Zendesk Net-Net Working Capital Related Terms

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


Zendesk (Zendesk) Business Description

Industry
Traded in Other Exchanges
N/A
Address
989 Market Street, San Francisco, CA, USA, 94103
Founded in 2007, Zendesk provides a portfolio of customer engagement software solutions via single applications or the Sunshine suite. Its software unifies customer communication and data across various channels and business units, and simplifies customer service and engagement across self service, phone, chat, messaging, and email.
Executives
Norman Gennaro officer: SVP, Worldwide Sales 1019 MARKET STREET, SAN FRANCISCO CA 94103
Jeffrey J Titterton officer: SVP, Marketing PLANETOUT INC., P.O. BOX 500, SAN FRANCISCO CA 94104
Adrian Mcdermott officer: SVP of Product Development C/O ZENDESK, INC., 989 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94103
Mikkel Svane director, officer: Chairman and CEO C/O ZENDESK, INC., 989 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94103
Pat Copeland officer: Chief Engineering Officer ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Ronald J Pasek director 101 INNOVATION DRIVE, SAN JOSE CA 95134
John Geschke officer: SVP, GC and Secretary C/O ZULILY, INC., 2601 ELLIOTT AVENUE, SUITE 200, SEATTLE WA 98101
Andrea Nieto officer: Chief People Officer ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Soren Abildgaard officer: EVP of Engineering ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Archana Agrawal director C/O MONGODB, INC., 1633 BROADWAY, 38TH FLOOR, NEW YORK NY 10019
L Michelle Wilson director PO BOX 81226, SEATTLE WA 98108-1226
Shelagh Glaser officer: Chief Financial Officer ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Inamarie Johnson officer: Chief People Officer 1019 MARKET STREET, SAN FRANCISCO CA 94103
Alex Constantinople officer: Chief Marketing Officer 133 7TH AVE, SAN FRANCISCO CA 94118
Marc Cabi officer: Deputy Chief Financial Officer ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103