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HORNBACH Baumarkt AG (HAM:HBM) Net-Net Working Capital : €-58.55 (As of Feb. 2023)


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What is HORNBACH Baumarkt AG 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.

HORNBACH Baumarkt AG's Net-Net Working Capital for the quarter that ended in Feb. 2023 was €-58.55.

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

HAM:HBM's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.15
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

HORNBACH Baumarkt AG Net-Net Working Capital Historical Data

The historical data trend for HORNBACH Baumarkt AG'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.

HORNBACH Baumarkt AG Net-Net Working Capital Chart

HORNBACH Baumarkt AG Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -53.89 -53.22 -55.34 -58.55 -55.29

HORNBACH Baumarkt AG Quarterly Data
Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 Feb23 Feb24
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 -49.08 -49.11 -55.32 -58.55 -55.29

Competitive Comparison of HORNBACH Baumarkt AG's Net-Net Working Capital

For the Home Improvement Retail subindustry, HORNBACH Baumarkt AG'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.


HORNBACH Baumarkt AG's Price-to-Net-Net-Working-Capital Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, HORNBACH Baumarkt AG's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



HORNBACH Baumarkt AG Net-Net Working Capital Calculation

HORNBACH Baumarkt AG's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Feb. 2024 is calculated as

Net-Net Working Capital(A: Feb. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(338.77+0.75 * 15.283+0.5 * 1130.075-2673.785
-0-0)/31.8068
=-55.29

HORNBACH Baumarkt AG's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2023 is calculated as

Net-Net Working Capital(Q: Feb. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(392.908+0.75 * 20.56+0.5 * 1308.797-2924.88
-0-0)/31.8068
=-58.55

* 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.


HORNBACH Baumarkt AG  (HAM:HBM) 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.


HORNBACH Baumarkt AG Net-Net Working Capital Related Terms

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HORNBACH Baumarkt AG (HAM:HBM) Business Description

Traded in Other Exchanges
Address
Hornbachstrasse, Pfalz, Bornheim bei Landau, RP, DEU, 76878
HORNBACH Baumarkt AG is a German company that operates megastores and offers do-it-yourself (DIY), home improvement, and gardening products. The company also operates in other European countries, including Austria, the Netherlands, the Czech Republic, Switzerland, and Romania. The company conducts its activities through its Retail and Real estate segments. The Retail segment operates DIY megastores and garden centers, while the Real estate segment focuses on retail properties. The stores' product range includes hardware/electrical, paint/wallpaper/flooring, construction materials, sanitary tiles, and garden products. The majority of the company's sales are derived from its retail segment.

HORNBACH Baumarkt AG (HAM:HBM) Headlines

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