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Home REIT (CHIX:HOMEL) Net-Net Working Capital : £-0.42 (As of Feb. 2022)


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What is Home REIT 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.

Home REIT's Net-Net Working Capital for the quarter that ended in Feb. 2022 was £-0.42.

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

CHIX:HOMEl's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 14.345
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Home REIT Net-Net Working Capital Historical Data

The historical data trend for Home REIT'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.

Home REIT Net-Net Working Capital Chart

Home REIT Annual Data
Trend Aug21
Net-Net Working Capital
-0.47

Home REIT Quarterly Data
Feb21 Aug21 Feb22
Net-Net Working Capital -0.49 -0.47 -0.42

Competitive Comparison of Home REIT's Net-Net Working Capital

For the REIT - Residential subindustry, Home REIT'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.

Home REIT's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

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

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


Home REIT Net-Net Working Capital Calculation

Home REIT's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Aug. 2021 is calculated as

Net-Net Working Capital(A: Aug. 2021 )
=(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)
=(6.218+0+0.75 * 0+0.5 * 0-118.658
-0-0)/240.57
=-0.47

Home REIT's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2022 is calculated as

Net-Net Working Capital(Q: Feb. 2022 )
=(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)
=(15.848+0+0.75 * 0+0.5 * 0-249.429
-0-0)/561.67
=-0.42

* 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.

Home REIT  (CHIX:HOMEl) 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.

Home REIT Net-Net Working Capital Related Terms

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Home REIT (CHIX:HOMEL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Home REIT PLC (CHIX:HOMEl) » Definitions » Net-Net Working Capital
Comparable Companies
Traded in Other Exchanges
N/A
Address
6th Floor, 125 London Wall, London, GBR, EC2Y 5AS
Website
https://www.homereituk.com
Home REIT PLC operates as a real estate investment company. The company invests in a diversified portfolio of homeless accommodation assets, let or pre-let to registered charities, housing associations, community interest companies and other regulated organisations that receive housing benefit or comparable funding from local or central government, on very long-term and index-linked leases. The investment objective is to deliver inflation-protected income and capital growth over the medium term for shareholders.

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