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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.
American Defense Systems's Net-Net Working Capital for the quarter that ended in Sep. 2012 was $-0.04.
The industry rank for American Defense Systems's Net-Net Working Capital or its related term are showing as below:
ADFS's Price-to-Net-Net-Working-Capital is not ranked *
in the Aerospace & Defense industry.
Industry Median: 9.635 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
American Defense Systems (OTCPK:ADFS) 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.
American Defense Systems Net-Net Working Capital Related Terms
American Defense Systems Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for American Defense Systems'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.
American Defense Systems Net-Net Working Capital Chart
ADFS vs ASDN, MKRS, PSSR: Net-Net Working Capital Comparison
For the Aerospace & Defense subindustry, American Defense Systems'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.
American Defense Systems Price-to-Net-Net-Working-Capital vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, American Defense Systems's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where American Defense Systems's Price-to-Net-Net-Working-Capital falls into.
* 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.
What does a Net-Net Working Capital of $-0.04 mean?
American Defense Systems (ADFS) has a Net-Net Working Capital of $-0.04 as of Sep. 2012. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on American Defense Systems
Is American Defense Systems' Net-Net Working Capital too high?
American Defense Systems' current Net-Net Working Capital is $-0.04.
How does American Defense Systems' Net-Net Working Capital compare to ASDN and MKRS?
American Defense Systems' Net-Net Working Capital of $-0.04 can be compared against companies in the Aerospace & Defense industry. The industry median Net-Net Working Capital is 9.64. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Aerospace & Defense company?
The median Net-Net Working Capital among Aerospace & Defense companies is 9.64, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on American Defense Systems For the Aerospace & Defense industry, the median Net-Net Working Capital is 9.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Defense Systems's current Net-Net Working Capital is $-0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Defense Systems stock overvalued right now?
American Defense Systems (ADFS) has a current Net-Net Working Capital of $-0.04. The current Net-Net Working Capital is $-0.04. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For American Defense Systems (ADFS), the current Net-Net Working Capital is $-0.04 as of Sep. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
American Defense Systems Inc is a defense and security products company engaged in three business areas: customized transparent and opaque armor solutions; architectural hardening and perimeter defense and tactical training products and services. It serves US government agencies, general contractors and other commercial and private entities operating in high-threat locations.
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