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.
BMC Software,'s Net-Net Working Capital for the quarter that ended in Jun. 2013 was €-10.21.
The industry rank for BMC Software,'s Net-Net Working Capital or its related term are showing as below:
FRA:BMS's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 8.62 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
BMC Software, Net-Net Working Capital Historical Data
The historical data trend for BMC Software,'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.
Competitive Comparison of BMC Software,'s Net-Net Working Capital
For the Software - Application subindustry, BMC Software,'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.
BMC Software,'s Price-to-Net-Net-Working-Capital Distribution in the Software Industry
For the Software industry and Technology sector, BMC Software,'s Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where BMC Software,'s Price-to-Net-Net-Working-Capital falls into.
* 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.
BMC Software, (FRA:BMS) 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.
BMC Software, Net-Net Working Capital Related Terms
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BMC Software, Inc., was organized as a Texas corporation in 1980 and was reincorporated in Delaware in July 1988. It is a software company which provides IT management solutions for large, mid-sized and small enterprises and public sector organizations around the world. The Company's portfolios of IT management software solutions simplifies and automates the management of IT processes, mainframe, distributed, virtualized and cloud computing environments, as well as applications and databases. It also provides its customers with maintenance and support services for its products and assist customers with software implementation, integration, IT process and organizational transformation, and education services. The Company is organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The Company's ESM segment consists of its solutions and related professional services in the following IT management areas: Service Assurance; Service Automation; Service Support; and BMC Atrium. The Company's MSM segment addresses IT requirements for mainframe data and performance management, middleware management, job scheduling and enterprise workload automation. The Company's customers include manufacturers, telecommunication companies, financial service providers, educational institutions, retailers, distributors, hospitals, service providers, government agencies and channel partners including resellers, distributors and system integrators. Its competitors are International Business Machines Corporation (IBM), CA, Inc. (CA) and Hewlett-Packard Company (HP). The Company's solutions are used by some of the largest, demanding IT organizations in the world including over 16,000 companies.
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