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Viterra (ASX:VTA) Net-Net Working Capital : A$-3.50 (As of Jul. 2012)


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What is Viterra 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.

Viterra's Net-Net Working Capital for the quarter that ended in Jul. 2012 was A$-3.50.

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

ASX:VTA's Price-to-Net-Net-Working-Capital is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.88
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Viterra Net-Net Working Capital Historical Data

The historical data trend for Viterra'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.

Viterra Net-Net Working Capital Chart

Viterra Annual Data
Trend Jul01 Jul02 Jul03 Jul04 Jul05 Jul06 Oct08 Oct09 Oct10 Oct11
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.47 -3.18 -5.57 -4.32 -5.08

Viterra Quarterly Data
Apr07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12
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 -4.37 -5.07 -5.83 -5.98 -3.50

Competitive Comparison of Viterra's Net-Net Working Capital

For the Farm Products subindustry, Viterra'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.

Viterra's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

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

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


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Viterra Net-Net Working Capital Calculation

Viterra's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Oct. 2011 is calculated as

Net-Net Working Capital(A: Oct. 2011 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(298.06+0.75 * 0+0.5 * 1568.41-2974.836
-0-0)/372.363
=-5.08

Viterra's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2012 is calculated as

Net-Net Working Capital(Q: Jul. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1043.652+0.75 * 0+0.5 * 1397.28-3043.199
-0-0)/371.729
=-3.50

* 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.

Viterra  (ASX:VTA) 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.

Viterra Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Viterra's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Viterra Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Viterra Inc (ASX:VTA) » Definitions » Net-Net Working Capital
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Traded in Other Exchanges
N/A
Address
Website
Viterra Inc was founded in 1924. The Company's business is managed and reported through three interrelated segments: Grain Handling and Marketing, Agri-products and Processing. In addition, a corporate non-operating segment is reported. Its Grain Handling and Marketing segment mainly handles wheat, durum, barley, canola and pulses. It derives its revenue from accumulating, storing, blending, transporting and marketing these grains from the producer's farm to end-use markets. This segment includes grain storage facilities and special crop processing plants strategically located in the prime agricultural growing regions of North America (primarily Western Canada) and southern Australia. It also has port export terminals located in Canada and South Australia and marketing offices located throughout North America, Australia, Europe and Asia. Its Agri-products segment is engaged in the sale of seed, crop protection products, fertilizer, and small agricultural equipment through a network of retail locations. The agri-products operation includes seed research and development, nitrogen fertilizer manufacturing, and crop protection product formulation and packaging. Subsequent to the end of fiscal 2011, the Company added bulk fuel distribution to its agri-products offerings in Western Canada. Its Processing segment extends the Company's value chain by producing food ingredients for consumer products companies and food processors around the world.