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Educational Development Corp  (NAS:EDUC) Net Current Asset Value: $-2.65 (As of May. 2017)

In calculating the Net Current Asset Value (NCAV), Benjamin Graham means a company's current assets (such as cash, marketable securities, and inventories) minus its total liabilities (including preferred stock and long-term debt).

Educational Development Corp's net current asset value per share for the quarter that ended in May. 2017 was $-2.65.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Educational Development Corp Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Net Current Asset Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.58 2.49 2.38 -3.44 -2.95

Educational Development Corp Quarterly Data

Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17
Net Current Asset Value 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 -3.59 -3.64 -3.45 -2.95 -2.65

Competitive Comparison
* 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.


Calculation

Educational Development Corp's Net Current Asset Value (NCAV) per share for the fiscal year that ended in Feb. 2017 is calculated as

Net Current Asset Value Per Share(A: Feb. 2017 )
=(Total Current Assets-Total Liabilities-Preferred Stock/Shares Outstanding (Diluted Average)
=(39.031-51.102-0)/4.09
=-2.95

Educational Development Corp's Net Current Asset Value (NCAV) per share for the quarter that ended in May. 2017 is calculated as

Net Current Asset Value Per Share(Q: May. 2017 )
=(Total Current Assets-Total Liabilities-Preferred Stock/Shares Outstanding (Diluted Average)
=(34.367-45.216-0)/4.09
=-2.65

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Benjamin Graham first discussed net current asset value (NCAV) in the 1934 edition of "Security Analysis", which he coauthored with David Dodd. In the book, (net) current asset value is defined as:" current assets alone, minus all liabilities and claims ahead of the issue."

The common definition of NCAV is: NCAV = current assets – [total liabilities + preferred stock]

Net current assets exclude not only the intangible assets but also the fixed and miscellaneous assets. 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.

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 Working Capital. They are collected under our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.


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