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Family Dollar Stores (FRA:FAY) Net-Net Working Capital : €-8.15 (As of May. 2015)


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What is Family Dollar Stores 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.

Family Dollar Stores's Net-Net Working Capital for the quarter that ended in May. 2015 was €-8.15.

The industry rank for Family Dollar Stores's Net-Net Working Capital or its related term are showing as below:

FRA:FAY's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Defensive industry.
Industry Median: 8.62
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Family Dollar Stores Net-Net Working Capital Historical Data

The historical data trend for Family Dollar Stores'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.

Family Dollar Stores Net-Net Working Capital Chart

Family Dollar Stores Annual Data
Trend Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.15 -6.51 -8.83 -8.04 -8.16

Family Dollar Stores Quarterly Data
Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15
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 -8.50 -8.16 -8.95 -9.26 -8.15

Competitive Comparison of Family Dollar Stores's Net-Net Working Capital

For the Discount Stores subindustry, Family Dollar Stores'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.


Family Dollar Stores's Price-to-Net-Net-Working-Capital Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Family Dollar Stores's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Family Dollar Stores's Price-to-Net-Net-Working-Capital falls into.



Family Dollar Stores Net-Net Working Capital Calculation

Family Dollar Stores's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Aug. 2014 is calculated as

Net-Net Working Capital(A: Aug. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(111.629+0.75 * 0+0.5 * 1209.059-1645.87
-0-0)/113.986
=-8.16

Family Dollar Stores's Net-Net Working Capital (NNWC) per share for the quarter that ended in May. 2015 is calculated as

Net-Net Working Capital(Q: May. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(196.896+0.75 * 0+0.5 * 1460.573-1860.689
-0-0)/114.514
=-8.15

* 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.


Family Dollar Stores  (FRA:FAY) 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.


Family Dollar Stores Net-Net Working Capital Related Terms

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Family Dollar Stores (FRA:FAY) Business Description

Traded in Other Exchanges
N/A
Address
Family Dollar Stores Inc was incorporated in November 1959. The Company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary. It operates general merchandise retail discount stores in 46 states, serving the basic needs of customers primarily in the low- and middle-income brackets. The stores are supported by 11 distribution centers and one Store Support Center. It competes for sales and store locations in varying degrees with international, national, regional and local retailing establishments, other discount stores, department stores, variety stores, dollar stores, discount clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other stores. The Company's trademark includes Family Dollar and Family Dollar Stores. Its business is subject to federal, state, local, and international laws, rules, and regulations, such as state and local wage and hour laws, anti-corruption laws, import and export laws, unclaimed property laws, and many others.

Family Dollar Stores (FRA:FAY) Headlines

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