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CODI (Compass Diversified Holdings) Net-Net Working Capital : $-29.14 (As of Sep. 2024)


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What is Compass Diversified Holdings 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.

Compass Diversified Holdings's Net-Net Working Capital for the quarter that ended in Sep. 2024 was $-29.14.

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

CODI's Price-to-Net-Net-Working-Capital is not ranked *
in the Conglomerates industry.
Industry Median: 6.65
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Compass Diversified Holdings Net-Net Working Capital Historical Data

The historical data trend for Compass Diversified Holdings'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.

Compass Diversified Holdings Net-Net Working Capital Chart

Compass Diversified Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.32 -21.76 -24.51 -33.19 -23.05

Compass Diversified Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -31.29 -23.05 -29.28 -29.10 -29.14

Competitive Comparison of Compass Diversified Holdings's Net-Net Working Capital

For the Conglomerates subindustry, Compass Diversified Holdings'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.


Compass Diversified Holdings's Price-to-Net-Net-Working-Capital Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Compass Diversified Holdings Net-Net Working Capital Calculation

Compass Diversified Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(450.477+0.75 * 318.241+0.5 * 740.387-2297.6
-303.918-192.631)/75.27
=-23.05

Compass Diversified Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(71.948+0.75 * 412.688+0.5 * 939.361-2459.533
-330.862-264.916)/75.6523
=-29.14

* 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.


Compass Diversified Holdings  (NYSE:CODI) 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.


Compass Diversified Holdings Net-Net Working Capital Related Terms

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Compass Diversified Holdings Business Description

Traded in Other Exchanges
Address
301 Riverside Avenue, Second Floor, Westport, CT, USA, 06880
Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.
Executives
Patrick A Maciariello other: See Remarks (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Simon Heidi Locke other: See Remark (a) 26 KENSETT LANE, DARIEN CT 06820
Ryan J Faulkingham other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
Larry L Enterline other: See Remark (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Teri Shaffer other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Nancy Mahon other: See Remark (a) C/O TPG PACE BENEFICIAL FINANCE CORP., 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Alexander S. Bhathal other: See Remark (a) 301 RIVERSIDE AVENUE, SECOND FLOOR, WESTPORT CT 06880
Gordon M Burns other: See Remark (a) AZTAR CORPORATION, 2390 E. CAMELBACK RD., SUITE 400, PHOENIX AZ 85016
Elias Sabo other: See Remarks (a) 2709 WATER RIDGE PARKWAY, 2ND FLOOR, CHARLOTTE NC 28217
Harold S Edwards other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880
James Bottiglieri other: See Remark (a) 2187 ATLANTIC ST, STAMFORD CT 06902
Compass Group Investments, Ltd. 10 percent owner BELVEDERE BUILDING, 69 PITTS BAY ROAD, HAMILTON HM 08 D0 00000
Sarah Gaines Mccoy other: See Remark (a) 6300 MERRILL CREEK PARKWAY, SUITE B, EVERETT WA 98203-5862
C Sean Day other: See Remark (a)
D Eugene Ewing other: See Remark (a) SIXTY ONE WILTON ROAD, SECOND FLOOR, WESTPORT CT 06880