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Vividend Management Group (JSE:VIF) Net-Net Working Capital : R-8.24 (As of Feb. 2014)


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What is Vividend Management Group 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.

Vividend Management Group's Net-Net Working Capital for the quarter that ended in Feb. 2014 was R-8.24.

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

JSE:VIF's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 13.73
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Vividend Management Group Net-Net Working Capital Historical Data

The historical data trend for Vividend Management Group'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.

Vividend Management Group Net-Net Working Capital Chart

Vividend Management Group Annual Data
Trend Aug11 Aug12 Aug13
Net-Net Working Capital
-4.94 -7.08 -7.69

Vividend Management Group Semi-Annual Data
Feb11 Feb12 Feb13 Feb14
Net-Net Working Capital - -2.77 -7.90 -8.24

Competitive Comparison of Vividend Management Group's Net-Net Working Capital

For the REIT - Diversified subindustry, Vividend Management Group'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.


Vividend Management Group's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Vividend Management Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Vividend Management Group Net-Net Working Capital Calculation

Vividend Management Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Aug. 2013 is calculated as

Net-Net Working Capital(A: Aug. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(171.803+0.75 * 0+0.5 * 0-2230.901
-0-0)/267.678
=-7.69

Vividend Management Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2014 is calculated as

Net-Net Working Capital(Q: Feb. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(80.698+0.75 * 0+0.5 * 0-2291.225
-0-0)/268.332
=-8.24

* 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.


Vividend Management Group  (JSE:VIF) 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.


Vividend Management Group Net-Net Working Capital Related Terms

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Vividend Management Group Business Description

Traded in Other Exchanges
N/A
Address
Vividend Management Group was incorporated on 17 February 2010. It is a real estate investment trust ( REIT). The Company's portfolio consists of investments in assets and opportunities within the various property sectors in South Africa and abroad with primary focus on the retail, commercial, industrial and office sectors. The Company own a portfolio of 22 properties providing 223 444 square metres of retail and commercial space.

Vividend Management Group Headlines

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