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Washington H Soul Pattinson (ASX:SOL) Net-Net Working Capital : A$-1.64 (As of Jan. 2024)


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What is Washington H Soul Pattinson 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.

Washington H Soul Pattinson's Net-Net Working Capital for the quarter that ended in Jan. 2024 was A$-1.64.

The industry rank for Washington H Soul Pattinson's Net-Net Working Capital or its related term are showing as below:

ASX:SOL's Price-to-Net-Net-Working-Capital is not ranked *
in the Capital Markets industry.
Industry Median: 7.115
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Washington H Soul Pattinson Net-Net Working Capital Historical Data

The historical data trend for Washington H Soul Pattinson'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.

Washington H Soul Pattinson Net-Net Working Capital Chart

Washington H Soul Pattinson Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.50 -9.76 -9.15 -0.73 1.09

Washington H Soul Pattinson Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.28 -0.73 0.79 1.09 -1.64

Competitive Comparison of Washington H Soul Pattinson's Net-Net Working Capital

For the Capital Markets subindustry, Washington H Soul Pattinson'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.


Washington H Soul Pattinson's Price-to-Net-Net-Working-Capital Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Washington H Soul Pattinson's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Washington H Soul Pattinson's Price-to-Net-Net-Working-Capital falls into.



Washington H Soul Pattinson Net-Net Working Capital Calculation

Washington H Soul Pattinson's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jul. 2023 is calculated as

Net-Net Working Capital(A: Jul. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1328.959+0.75 * 136.884+0.5 * 75.605-1062.174
-0-13.141)/360.968
=1.09

Washington H Soul Pattinson's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jan. 2024 is calculated as

Net-Net Working Capital(Q: Jan. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(470.372+0.75 * 213.119+0.5 * 70.854-1245.164
-0-12.829)/360.968
=-1.64

* 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.


Washington H Soul Pattinson  (ASX:SOL) 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.


Washington H Soul Pattinson Net-Net Working Capital Related Terms

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Washington H Soul Pattinson (ASX:SOL) Business Description

Traded in Other Exchanges
Address
151 Clarence Street, Level 14, Sydney, NSW, AUS, 2000
Washington H. Soul Pattinson, or Soul Patts, is a value-oriented investment house which invests in both public and private markets. As an investor, Soul Patts allocates capital with a view to taking a long-term position in its investments and on a passive basis. Long-term holdings in the group's three largest investments—TPG Telecom, Brickworks and New Hope Corporation—contribute more than half of the group's circa AUD 11 billion investment net asset value. A cross-shareholding between Soul Patts and Brickworks was established in the 1960s.