Liberty Financial Group (ASX:LFG) Net-Net Working Capital : A$2.59 (As of Dec. 2024)

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What is Liberty Financial 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.

Liberty Financial Group's Net-Net Working Capital for the quarter that ended in Dec. 2024 was A$2.59.

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

ASX:LFG's Price-to-Net-Net-Working-Capital is ranked better than
84% of 75 companies
in the Credit Services industry
Industry Median: 7.57 vs ASX:LFG: 1.23

Liberty Financial Group Net-Net Working Capital Historical Data

The historical data trend for Liberty Financial 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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Liberty Financial Group Net-Net Working Capital Chart

Liberty Financial Group Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Jun24

Net-Net Working Capital

0.84

1.83

-40.52

-42.58

-44.57

Liberty Financial Group Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Net-Net Working Capital	Get a 7-Day Free Trial					-40.09	-42.58	-42.70	-44.57	2.59

Competitive Comparison of Liberty Financial Group's Net-Net Working Capital

For the Credit Services subindustry, Liberty Financial 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.

Liberty Financial Group's Price-to-Net-Net-Working-Capital Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Liberty Financial Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

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Liberty Financial Group Net-Net Working Capital Calculation

Liberty Financial Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2024 is calculated as

	Net-Net Working Capital		(A: Jun. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1575.568	+	0.75 * 0	+	0.5 * 0	-	15109.854
-	0	-	-2.733)	/	303.600
=	-44.57

Liberty Financial Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2024 is calculated as

	Net-Net Working Capital		(Q: Dec. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(15773.472	+	0.75 * 232.697	+	0.5 * 0	-	15164.128
-	0	-	-2.974)	/	303.600
=	2.59

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.

Liberty Financial Group (ASX:LFG) 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.

Liberty Financial Group Net-Net Working Capital Related Terms

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Liberty Financial Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Liberty Financial Group Ltd (ASX:LFG) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

535 Bourke Street, Level 16, Melbourne, VIC, AUS, 3000

Website

https://www.liberty.com.au

Founded in 1997, Liberty Financial Group is a nonbank lender operating in Australia and New Zealand. Unlike banks, nonbanks are unable to take customer deposits, a privilege exclusive to Authorized deposit-taking institutions, or ADIs. Liberty operates three business segments: residential, secured finance, and financial services. Mortgages make up about 55% of the loan book, with a focus on higher-risk borrowers. Secured finance makes up 40% of loans, including motor finance, commercial property loans, and self-managed superannuation fund, or SMSF, loans. The financial services division includes unsecured personal and small and midsize business loans, mortgage broking, and distribution of general and life insurance.