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Berkshire Homes (Berkshire Homes) Net-Net Working Capital : $-6.42 (As of Aug. 2015)


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What is Berkshire Homes 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.

Berkshire Homes's Net-Net Working Capital for the quarter that ended in Aug. 2015 was $-6.42.

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

BKSH's Price-to-Net-Net-Working-Capital is not ranked *
in the Real Estate industry.
Industry Median: 4.56
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Berkshire Homes Net-Net Working Capital Historical Data

The historical data trend for Berkshire Homes'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.

Berkshire Homes Net-Net Working Capital Chart

Berkshire Homes Annual Data
Trend Nov11 Nov12 Nov13 Nov14
Net-Net Working Capital
-0.57 -1.06 -1.45 -6.26

Berkshire Homes Quarterly Data
Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15
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 -3.43 -6.26 -6.47 -6.23 -6.42

Competitive Comparison of Berkshire Homes's Net-Net Working Capital

For the Real Estate Services subindustry, Berkshire Homes'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.


Berkshire Homes's Price-to-Net-Net-Working-Capital Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Berkshire Homes's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Berkshire Homes Net-Net Working Capital Calculation

Berkshire Homes's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Nov. 2014 is calculated as

Net-Net Working Capital(A: Nov. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.354+0.75 * 0+0.5 * 0-10.194
-0-0)/1.572
=-6.26

Berkshire Homes's Net-Net Working Capital (NNWC) per share for the quarter that ended in Aug. 2015 is calculated as

Net-Net Working Capital(Q: Aug. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.478+0.75 * 0+0.5 * 0-10.574
-0-0)/1.572
=-6.42

* 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.


Berkshire Homes  (OTCPK:BKSH) 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.


Berkshire Homes Net-Net Working Capital Related Terms

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Berkshire Homes (Berkshire Homes) Business Description

Traded in Other Exchanges
N/A
Address
2375 East Camelback Road, Suite 600, Phoenix, AZ, USA, 85016
Berkshire Homes Inc is a United States based company engaged in acquiring and rehabilitating distressed residential real estate properties that are below market value, rehabilitates them, and then sell or lease them, depending on which approach will generate the highest return.

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