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Microsoft Corp  (NAS:MSFT) Net Current Asset Value: $-1.15 (As of Jun. 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).

Microsoft Corp's net current asset value per share for the quarter that ended in Jun. 2017 was $-1.15.


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.

Microsoft Corp Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Net Current Asset Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.56 3.84 3.54 2.33 -1.15

Microsoft Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 2.33 2.02 -1.40 -1.16 -1.15

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

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

Net Current Asset Value Per Share(A: Jun. 2017 )
=(Total Current Assets-Total Liabilities-Preferred Stock/Shares Outstanding (Diluted Average)
=(159851-168692-0)/7708.00
=-1.15

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

Net Current Asset Value Per Share(Q: Jun. 2017 )
=(Total Current Assets-Total Liabilities-Preferred Stock/Shares Outstanding (Diluted Average)
=(159851-168692-0)/7708.00
=-1.15

* 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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