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AMH (American Homes 4 Rent) Net-Net Working Capital : $-15.37 (As of Sep. 2024)


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What is American Homes 4 Rent 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.

American Homes 4 Rent's Net-Net Working Capital for the quarter that ended in Sep. 2024 was $-15.37.

The industry rank for American Homes 4 Rent's Net-Net Working Capital or its related term are showing as below:

AMH's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 14.67
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

American Homes 4 Rent Net-Net Working Capital Historical Data

The historical data trend for American Homes 4 Rent'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.

American Homes 4 Rent Net-Net Working Capital Chart

American Homes 4 Rent Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.32 -11.48 -14.27 -15.77 -15.43

American Homes 4 Rent Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -15.43 -15.43 -15.25 -15.08 -15.37

Competitive Comparison of American Homes 4 Rent's Net-Net Working Capital

For the REIT - Residential subindustry, American Homes 4 Rent'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 Homes 4 Rent's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Homes 4 Rent's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Price-to-Net-Net-Working-Capital falls into.



American Homes 4 Rent Net-Net Working Capital Calculation

American Homes 4 Rent's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(59.385+0.75 * 42.823+0.5 * 0-5035.307
-0.092-685.359)/364.932
=-15.43

American Homes 4 Rent's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(162.477+0.75 * 49.727+0.5 * 0-5148.681
-0.092-684.11)/366.52
=-15.37

* 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.


American Homes 4 Rent  (NYSE:AMH) 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 Homes 4 Rent Net-Net Working Capital Related Terms

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American Homes 4 Rent Business Description

Traded in Other Exchanges
Address
280 Pilot Road, Las Vegas, NV, USA, 89119
American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
Executives
Jack E Corrigan director, officer: Chief Operating Officer C/O AMERICAN HOMES 4 RENT, 23975 PARK SORRENTO, SUITE 300, CALABASAS CA 91302
Matthew J Hart director C/O AIR LEASE CORPORATION, 2000 AVENUE OF THE STARS, SUITE 1000N, LOS ANGELES CA 90067
James H Kropp director 701 WESTERN AVENUE, GLENDALE CA 91201
Douglas N Benham director
Bryan Smith officer: Chief Operating Officer C/O AMERICAN HOMES 4 RENT, 280 PILOT ROAD, LAS VEGAS NV 89119
Brian Reitz officer: Chief Accounting Officer C/O AMERICAN HOMES 4 RENT, 280 PILOT ROAD, LAS VEGAS NV 89119
Sara H. Vogt-lowell officer: SVP & Chief Legal Officer C/O AMERICAN HOMES 4 RENT, 23975 PARK SORRENTO, SUITE 300, CALABASAS CA 91302
Christopher Lau officer: Chief Financial Officer C/O AMERICAN HOMES 4 RENT, 280 PILOT ROAD, LAS VEGAS NV 89119
Tamara Hughes Gustavson director 701 WESTERN AVENUE, GLENDALE CA 91201-2349
Kenneth M. Woolley director 2795 EAST COTTONWOOD PARKWAY, SUITE 400, SALT LAKE CITY UT 84121
Anita Marie Mayala-mcintyre other: MGR. HF Investments 2010, LLC 423 CALLE SANTIAGO, NEWBURY PARK CA 91320
Hughes B Wayne Et Al director 701 WESTERN AVENUE, GLENDALE CA 91201
David P. Singelyn director, 10 percent owner, officer: Chief Executive Officer C/O AMERICAN HOMES 4 RENT, 280 PILOT ROAD,, LAS VEGAS NV 89119
Michelle C. Kerrick director C/O AMERICAN HOMES 4 RENT (LEGAL DEPT), 280 PILOT ROAD, LAS VEGAS NV 89119
Matthew R Zaist director C/O WILLIAM LYON HOMES, 4695 MACARTHUR COURT, 8TH FLOOR, NEWPORT BEACH CA 92660