AOS (A.O. Smith) Net-Net Working Capital : $-3.24 (As of Mar. 2025)

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What is A.O. Smith 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.

A.O. Smith's Net-Net Working Capital for the quarter that ended in Mar. 2025 was $-3.24.

The industry rank for A.O. Smith's Net-Net Working Capital or its related term are showing as below:

AOS's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Industrial Products industry.
Industry Median: 8.41
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

A.O. Smith Net-Net Working Capital Historical Data

The historical data trend for A.O. Smith'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.

A.O. Smith Net-Net Working Capital Chart

A.O. Smith Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Net-Net Working Capital

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-0.21

-1.97

-2.70

-2.10

-2.83

A.O. Smith Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Net-Net Working Capital	Get a 7-Day Free Trial															-2.02	-1.99	-1.94	-2.83	-3.24

Competitive Comparison of A.O. Smith's Net-Net Working Capital

For the Specialty Industrial Machinery subindustry, A.O. Smith'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.

A.O. Smith's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, A.O. Smith's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

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A.O. Smith Net-Net Working Capital Calculation

A.O. Smith's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2024 is calculated as

	Net-Net Working Capital		(A: Dec. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(276.1	+	0.75 * 541.4	+	0.5 * 532.1	-	1356.5
-	0	-	0)	/	144.320
=	-2.83

A.O. Smith's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2025 is calculated as

	Net-Net Working Capital		(Q: Mar. 2025 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(200.2	+	0.75 * 641.5	+	0.5 * 532.6	-	1412.6
-	0	-	0)	/	143.529
=	-3.24

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.

A.O. Smith (NYSE:AOS) 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.

A.O. Smith Net-Net Working Capital Related Terms

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A.O. Smith Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » A.O. Smith Corp (NYSE:AOS) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

0L7A:UK 3SM:Germany 3SM:Germany A1OS34:Brazil

Address

11270 West Park Place, Suite 170, Milwaukee, WI, USA, 53224

Website

https://www.aosmith.com

A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

Executives

Samuel M. Carver	officer: SVP - Global Operations	A. O. SMITH CORPORATION, 44 VANTAGE WAY, NASHVILLE TN 37228
Douglas Samuel Karge	officer: SVP - President NA Water Treat	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Robert J Heideman	officer: Senior Vice President Corp Tec	A. O. SMITH CORPORATE TECHNOLOGY CENTER, 12100 WEST PARK PLACE, MILWAUKEE WI 53224
Ronald D Brown	director	2090 FLORENCE AVENUE, CINCINNATI OH 45206
Ajita G Rajendra	officer: President, A. O. Smith Water P	A. O. SMITH WATER PRODUCTS COMPANY, 500 LINDAHL PARKWAY, ASHLAND CITY TN 37015
Idelle K Wolf	director
Mark D Smith	director
Mark A Petrarca	officer: Vice President - H.R. & P.A.	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
James F Stern	officer: Exec VP, General Counsel & Sec	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Kevin J. Wheeler	officer: Senior VP and President & GM	A. O. SMITH CORPORATION, 500 TENNESSEE WALTZ PARKWAY, ASHLAND CITY TN 37015
Benjamin A Otchere	officer: Vice President and Controller	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Michael M Larsen	director	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Daniel L Kempken	officer: Vice President and Controller	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224
Parag Kulkarni	officer: SVP - Int'l; President India	A. O. SMITH INDIA WATER PRODUCTS PRIVATE, #300, PHASE II, KIADB INDUSTRIAL AREA, KARNATAKA K7 562112
Earl E. Exum	director	A. O. SMITH CORPORATION, 11270 WEST PARK PLACE, MILWAUKEE WI 53224