Protective Life (FRA:PV7) Net-Net Working Capital : €-638.95 (As of Sep. 2014)

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What is Protective Life 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.

Protective Life's Net-Net Working Capital for the quarter that ended in Sep. 2014 was €-638.95.

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

FRA:PV7's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Insurance industry.
Industry Median: 4.555
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Protective Life Net-Net Working Capital Historical Data

The historical data trend for Protective Life'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.

Protective Life Net-Net Working Capital Chart

Protective Life Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Net-Net Working Capital

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-325.72

-376.07

-450.97

-508.89

-596.89

Protective Life Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Net-Net Working Capital	Get a 7-Day Free Trial															-516.53	-596.89	-597.54	-614.40	-638.95

Competitive Comparison of Protective Life's Net-Net Working Capital

For the Insurance - Life subindustry, Protective Life'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.

Protective Life's Price-to-Net-Net-Working-Capital Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Protective Life's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Protective Life Net-Net Working Capital Calculation

Protective Life'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 )
=	(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)
=	(340.576	+	97.927	+	0.75 * 0	+	0.5 * 0	-	47500.598
-	0	-	0)	/	78.8458
=	-596.89

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

	Net-Net Working Capital		(Q: Sep. 2014 )
=	(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)
=	(254.906	+	142.327	+	0.75 * 0	+	0.5 * 0	-	51057.318
-	0	-	0)	/	79.2865
=	-638.95

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.

Protective Life (FRA:PV7) 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.

Protective Life Net-Net Working Capital Related Terms

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Protective Life (FRA:PV7) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.protective.com

Protective Life Corporation, a Delaware corporation was founded in 1907. A holding company, whose subsidiaries provide financial services through the production, distribution, and administration of insurance and investment products. The Company's operating segments are Life Marketing, Acquisitions, Annuities, Stable Value Products, Asset Protection and Corporate and Other. The Life Marketing segment markets universal life, variable universal life, bank-owned life insurance and level premium term insurance products on a national basis mainly through networks of independent insurance agents and brokers, stockbrokers, and independent marketing organizations. The Acquisitions segment focuses on acquiring, converting, and servicing policies acquired from other companies. The segment's main focus is on life insurance policies and annuity products that were sold to individuals. The Annuities segment markets fixed and variable annuity products. These products are mainly sold through broker-dealers, but are also sold through financial institutions and independent agents and brokers. The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the Federal Home Loan Bank and markets guaranteed investment contracts (GICs) to 401(k) and other qualified retirement savings plans. The Asset Protection segment mainly markets extended service contracts and credit life and disability insurance to protect consumers' investments in automobiles, watercraft, and recreational vehicles. In addition, the segment markets a guaranteed asset protection product and an inventory protection product. The Company has an additional segment referred to as Corporate and Other which earnings from several non-strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of non-recourse funding obligations. The Company encounters competition in all lines of business from other insurance companies, many of which have greater financial resources and higher ratings than the Company and which might have a greater market share, offer products, services or features, assume a greater level of risk, have lower operating or financing costs, or have different profitability expectations than the Company. The Company also faces competition from other providers of financial services. The Company and its subsidiaries are subject to government regulation in each of the states in which it conducts business.

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