Lynch Group Holdings (ASX:LGL) Net-Net Working Capital : A$-0.96 (As of Dec. 2024)

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What is Lynch Group Holdings 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.

Lynch Group Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2024 was A$-0.96.

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

ASX:LGL's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 6.89
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Lynch Group Holdings Net-Net Working Capital Historical Data

The historical data trend for Lynch Group Holdings'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.

Lynch Group Holdings Net-Net Working Capital Chart

Lynch Group Holdings Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

Net-Net Working Capital

-1.07

-0.72

-0.84

-0.83

Lynch Group Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Net-Net Working Capital	Get a 7-Day Free Trial				-0.98	-0.84	-0.93	-0.83	-0.96

Competitive Comparison of Lynch Group Holdings's Net-Net Working Capital

For the Farm Products subindustry, Lynch Group Holdings'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.

Lynch Group Holdings's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lynch Group Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

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Lynch Group Holdings Net-Net Working Capital Calculation

Lynch Group Holdings'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)
=	(32.345	+	0.75 * 20.109	+	0.5 * 16.561	-	157.241
-	0	-	0)	/	122.066
=	-0.83

Lynch Group Holdings'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)
=	(17.082	+	0.75 * 29.289	+	0.5 * 16.755	-	164.071
-	0	-	0)	/	122.066
=	-0.96

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.

Lynch Group Holdings (ASX:LGL) 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.

Lynch Group Holdings Net-Net Working Capital Related Terms

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Lynch Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lynch Group Holdings Ltd (ASX:LGL) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

8b Williamson Road, Ingleburn, Sydney, NSW, AUS, 2565

Website

https://www.lynchgroup.com.au

Lynch Group Holdings Ltd is a vertically integrated wholesale floral company whose farms cover the entire process of planting, growing, merchandising, and selling flowers and potted plants to supermarket chains and commercial outlets throughout Australia and China. The Group is organized into two operating segments Australia, which operates a vertically integrated production farm and wholesale operation in Australia; and China segment, which segment operates a production farm and distribution operation in China, supplying the domestic China market as well as the Australian segment. The company generates the majority of its revenue from the Australia segment.