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ELASX:EIM Net-Net Working Capital is A$-0.02 as of Dec. 2013. The stock has 3 warning signs investors should review.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
EL's Net-Net Working Capital for the quarter that ended in Dec. 2013 was A$-0.02.
The industry rank for EL's Net-Net Working Capital or its related term are showing as below:
ASX:EIM's Price-to-Net-Net-Working-Capital is not ranked *
in the industry.
Industry Median: * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
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.
EL Net-Net Working Capital Related Terms
EL Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for EL'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.
For the subindustry, EL'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.
EL Price-to-Net-Net-Working-Capital vs Industry
For the industry and sector, EL's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where EL'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 A$-0.02 mean?
EL (ASX:EIM) has a Net-Net Working Capital of A$-0.02 as of Dec. 2013. 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 EL
Is EL's Net-Net Working Capital too high?
EL's current Net-Net Working Capital is A$-0.02.
How does EL's Net-Net Working Capital compare to competitors?
EL's Net-Net Working Capital is A$-0.02. 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 a company?
A good Net-Net Working Capital depends on the industry context. 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 EL EL's current Net-Net Working Capital is A$-0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EL stock overvalued right now?
EL (ASX:EIM) has a current Net-Net Working Capital of A$-0.02. The current Net-Net Working Capital is A$-0.02. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For EL (ASX:EIM), the current Net-Net Working Capital is A$-0.02 as of Dec. 2013. 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.
EL Corporation Limited was incorporated and domiciled in Australia. The Company's activities during the financial year were the import, design, sales, service and support of computer and communication systems and equipment; provision of information technology education, systems design; and integration and development of consultancy services. The activities were changed at the annual general meeting held on 31st May 2012, with shareholders' approval to include mining and exploration activities in connection with the intended acquisition of the Birthday Mine. The Company operates in Australia, New Zealand, and Taiwan.
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