Forge Group (ASX:FGE) Net-Net Working Capital : A$-0.95 (As of Jun. 2013)

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What is Forge Group 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.

Forge Group's Net-Net Working Capital for the quarter that ended in Jun. 2013 was A$-0.95.

The industry rank for Forge Group's Net-Net Working Capital or its related term are showing as below:

ASX:FGE's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Construction industry.
Industry Median: 5.45
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Forge Group Net-Net Working Capital Historical Data

The historical data trend for Forge Group'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.

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Forge Group Net-Net Working Capital Chart

Forge Group Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Net-Net Working Capital

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-0.24

-0.12

0.05

-1.99

-0.95

Forge Group Semi-Annual Data
	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Net-Net Working Capital	Get a 7-Day Free Trial			-0.24	-0.12	0.05	-1.99	-0.95

Competitive Comparison of Forge Group's Net-Net Working Capital

For the Engineering & Construction subindustry, Forge Group'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.

Forge Group's Price-to-Net-Net-Working-Capital Distribution in the Construction Industry

For the Construction industry and Industrials sector, Forge Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Forge Group's Price-to-Net-Net-Working-Capital falls into.

Forge Group Net-Net Working Capital Calculation

Forge Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2013 is calculated as

	Net-Net Working Capital		(A: Jun. 2013 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(93.476	+	0.75 * 0	+	0.5 * 150.491	-	250.784
-	0	-	0)	/	86.238
=	-0.95

Forge Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2013 is calculated as

	Net-Net Working Capital		(Q: Jun. 2013 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(93.476	+	0.75 * 0	+	0.5 * 150.491	-	250.784
-	0	-	0)	/	86.307
=	-0.95

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.

Forge Group (ASX:FGE) 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.

Forge Group Net-Net Working Capital Related Terms

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Forge Group (ASX:FGE) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.forgegroup.com.au

Forge Group Ltd provides construction, commercial building, engineering, maintenance and workshop fabrication services. Its operations are segmented into four areas - Minerals & Resources, Power, Construction and Asset Management. The Minerals & Resources segment provides a wide range of engineering, design and construction services for the mining and metals sector. The Power segment provides turnkey power generation solutions to the energy and utilities sectors. The Construction segment offers a suite of construction services that covers all disciplines including heavy civil, structural, mechanical, piping, tanks, electrical, instrumentation, and building. Further, the Asset Management segment offers various asset management services. The Company has operational footprints across Australia, North America, Africa and Asia.

Forge Group (ASX:FGE) Headlines

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