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Far East Hotels & Entertainment (HKSE:00037) Net-Net Working Capital : HK$0.02 (As of Sep. 2023)


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What is Far East Hotels & Entertainment 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.

Far East Hotels & Entertainment's Net-Net Working Capital for the quarter that ended in Sep. 2023 was HK$0.02.

The industry rank for Far East Hotels & Entertainment's Net-Net Working Capital or its related term are showing as below:

HKSE:00037's Price-to-Net-Net-Working-Capital is ranked worse than
88.63% of 343 companies
in the Real Estate industry
Industry Median: 4.51 vs HKSE:00037: 28.00

Far East Hotels & Entertainment Net-Net Working Capital Historical Data

The historical data trend for Far East Hotels & Entertainment'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.

Far East Hotels & Entertainment Net-Net Working Capital Chart

Far East Hotels & Entertainment Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.02 -0.03 0.01 - 0.02

Far East Hotels & Entertainment Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 0.01 - 0.01 0.02 0.02

Competitive Comparison of Far East Hotels & Entertainment's Net-Net Working Capital

For the Real Estate Services subindustry, Far East Hotels & Entertainment'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.


Far East Hotels & Entertainment's Price-to-Net-Net-Working-Capital Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Far East Hotels & Entertainment's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Far East Hotels & Entertainment's Price-to-Net-Net-Working-Capital falls into.



Far East Hotels & Entertainment Net-Net Working Capital Calculation

Far East Hotels & Entertainment's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

Net-Net Working Capital(A: Mar. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(50.051+0.75 * 0.431+0.5 * 0.317-36.218
-0-0)/748.53
=0.02

Far East Hotels & Entertainment's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

Net-Net Working Capital(Q: Sep. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(45.101+0.75 * 0.372+0.5 * 0.488-30.682
-0-0)/752.53
=0.02

* 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.


Far East Hotels & Entertainment  (HKSE:00037) 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.


Far East Hotels & Entertainment Net-Net Working Capital Related Terms

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Far East Hotels & Entertainment (HKSE:00037) Business Description

Traded in Other Exchanges
N/A
Address
200 Gloucester Road, Suite 1902, 19th Floor, The Sun’s Group Centre, Wanchai, Hong Kong, HKG
Far East Hotels & Entertainment Ltd is a Hong Kong-based investment holding company. Through its subsidiaries, the company operates under business segments of Hotel operations in Hong Kong; Serviced property letting in Mainland China; Property investment in Hong Kong; Property investment overseas; and Securities investment and trading. The company earns maximum revenue from Hotel operations in Hong Kong. The group's operations are located in Hong Kong, Mainland China, and overseas.
Executives
Chiu Derek 2201 Interest of corporation controlled by you
Lui Yu Kin 2101 Beneficial owner

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