GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Cathay General Bancorp (NAS:CATY) » Definitions » Net-Net Working Capital

CATY (Cathay General Bancorp) Net-Net Working Capital : $-261.33 (As of Mar. 2025)


View and export this data going back to 1990. Start your Free Trial

What is Cathay General Bancorp 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.

Cathay General Bancorp's Net-Net Working Capital for the quarter that ended in Mar. 2025 was $-261.33.

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

CATY's Price-to-Net-Net-Working-Capital is not ranked *
in the Banks industry.
Industry Median: 4.93
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Cathay General Bancorp Net-Net Working Capital Historical Data

The historical data trend for Cathay General Bancorp'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.

Cathay General Bancorp Net-Net Working Capital Chart

Cathay General Bancorp Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -177.63 -195.65 -230.63 -245.47 -260.01

Cathay General Bancorp Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -243.84 -244.06 -245.61 -260.01 -261.33

Competitive Comparison of Cathay General Bancorp's Net-Net Working Capital

For the Banks - Regional subindustry, Cathay General Bancorp'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.


Cathay General Bancorp's Price-to-Net-Net-Working-Capital Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Cathay General Bancorp's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


;
;

Cathay General Bancorp Net-Net Working Capital Calculation

Cathay General Bancorp's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2024 is calculated as

Net-Net Working Capital(A: Dec. 2024 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(157.167+1553.57+0.75 * 97.779+0.5 * 0-20208.977
-0-0)/70.863
=-260.01

Cathay General Bancorp's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2025 is calculated as

Net-Net Working Capital(Q: Mar. 2025 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(175.027+1791.041+0.75 * 95.755+0.5 * 0-20339.863
-0-0)/70.035
=-261.33

* 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.


Cathay General Bancorp  (NAS:CATY) 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.


Cathay General Bancorp Net-Net Working Capital Related Terms

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


Cathay General Bancorp Business Description

Traded in Other Exchanges
Address
777 North Broadway, Los Angeles, CA, USA, 90012
Cathay General Bancorp is a regional bank predominantly serving the Chinese-American community. The company's policy is to reach out and actively offer services to low-to-moderate income groups in the delineated branch service areas. It predominantly provides services such as checking and deposit, lines of credits, commercial and commercial real estate loans, merchant services and payment processing, treasury management services, international banking and financing services, and other customary banking services to individuals, professionals, and small to medium-sized businesses. Through its Wealth Management unit, the company also offers investment products and services, such as stocks, bonds, mutual funds, insurance, annuities and advisory services.
Executives
Anthony M Tang director, officer: EVP
Peter Wu director, officer: Executive Vice Chairman/COO
Dunson K Cheng director, officer: Chairman & President
Kim R Bingham officer: EVP - Chief Credit Officer CATHAY BANK, 777 NORTH BROADWAY, LOS ANGELES CA 90012
Richard Sun director CATHAY GENERAL BANCORP, 9650 FLAIR DRIVE, EL MONTE CA 91731
May K. Chan officer: SVP, General Counsel 9650 FLAIR DRIVE, EL MONTE CA 91731
Shally Wang director 9650 FLAIR DRIVE, EL MONTE CA 91731
Irwin Wong officer: Executive Vice President
Jane H Jelenko director CATHAY GENERAL BANCORP, 9650 FLAIR DRIVE, EL MONTE CA 91731
Maan-huei Hung director CATHAY GENERAL BANCORP, 9650 FLAIR DRIVE, EL MONTE CA 91731
Lisa L. Kim officer: EVP, General Counsel EAST WEST BANCORP INC, 135 N. LOS ROBLES AVE., 7TH FL, PASADENA CA 91101
Chang Liu officer: EVP, Chief Operating Officer C/O FIRST PACTRUST BANCORP INC, 610 BAY BOULEVARD, CHULA VISTA CA 91910
Kelly L Chan director
Mark Hakjoon Lee officer: EVP, Chief Credit Officer CATHAY GENERAL BANCORP, 9650 FLAIR DRIVE, EL MONTE CA 91731
Patrick Lee director