LSI (FRA:LOG) Net-Net Working Capital : €0.34 (As of Mar. 2014)

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What is LSI 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.

LSI's Net-Net Working Capital for the quarter that ended in Mar. 2014 was €0.34.

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

FRA:LOG's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Semiconductors industry.
Industry Median: 8.53
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

LSI Net-Net Working Capital Historical Data

The historical data trend for LSI'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.

LSI Net-Net Working Capital Chart

LSI Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Net-Net Working Capital

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-0.22

-0.11

0.05

-0.30

0.21

LSI Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
Net-Net Working Capital	Get a 7-Day Free Trial															-0.26	-0.21	-0.18	0.21	0.34

Competitive Comparison of LSI's Net-Net Working Capital

For the Semiconductors subindustry, LSI'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.

LSI's Price-to-Net-Net-Working-Capital Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, LSI's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

LSI Net-Net Working Capital Calculation

LSI's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2013 is calculated as

	Net-Net Working Capital		(A: Dec. 2013 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(591.182	+	0.75 * 197.72	+	0.5 * 114.095	-	675.968
-	0	-	0)	/	567.479
=	0.21

LSI's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2014 is calculated as

	Net-Net Working Capital		(Q: Mar. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(638.647	+	0.75 * 181.634	+	0.5 * 117.061	-	632.648
-	0	-	0)	/	588.455
=	0.34

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.

LSI (FRA:LOG) 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.

LSI Net-Net Working Capital Related Terms

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LSI (FRA:LOG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » LSI Corp (FRA:LOG) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.lsi.com

LSI Corporation was incorporated in California on November 6, 1980, and was reincorporated in Delaware on June 11, 1987. The Company designs, develops and markets networking semiconductors and storage systems. It provides silicon-to-system solutions that are used to create, store, consume and transport digital information. It offers integrated circuits used in hard disk drives, solid state drives, high-speed communications systems, computer servers, storage systems and personal computers. It also offers external storage systems, storage systems software, redundant array of independent disks, or RAID, adapters for computer servers, and RAID software applications. The Company has two segments â€” the Semiconductor segment and the Storage Systems segment. Its semiconductor segment designs, develops and markets complex integrated circuits for storage and networking applications. These solutions include both custom solutions and standard products. It designs custom solutions for a specific application defined by the customer. The Company develops products for market applications that it defines and sells them to multiple customers. It sells its integrated circuits for storage applications to makers of hard disk drives, solid state drives and computer servers. It sells its integrated circuits for networking applications principally to makers of devices used in computer and telecommunications networks and, to a lesser extent, to makers of personal computers. Its storage systems segment designs and sells enterprise storage systems and storage software applications that enable storage area networks. The Company also offers RAID adapters for computer servers and associated software for attaching storage devices to computer servers. It sells its storage systems and storage solutions mainly to OEMs who resell these products to end customers under their own brand name. The semiconductor industry is competitive and is characterized by rapidly changing technology, short product cycles and emerging standards. The semiconductor manufacturing process begins with wafer fabrication, where a design is transferred to silicon wafers through a series of processes, including photolithography, ion implantation, deposition of numerous films and the etching of these various films and layers. On January 3, 2012, the company acquired SandForce, Inc., a provider of flash storage processors, or FSPs, for enterprise and client flash solutions and solid state drives, or SSDs. Federal, state and local regulations, in addition to those of other nations, impose various environmental controls on certain chemicals and restricted substances used in the manufacture of semiconductor and storage products.

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