GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Kingfisher PLC (OTCPK:KGFHF) » Definitions » Net-Net Working Capital

KGFHF (Kingfisher) Net-Net Working Capital : $-2.24 (As of Jul. 2024)


View and export this data going back to . Start your Free Trial

What is Kingfisher 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.

Kingfisher's Net-Net Working Capital for the quarter that ended in Jul. 2024 was $-2.24.

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

KGFHF's Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 5.88
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Kingfisher Net-Net Working Capital Historical Data

The historical data trend for Kingfisher'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.

Kingfisher Net-Net Working Capital Chart

Kingfisher Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.51 -2.14 -2.21 -2.28 -2.35

Kingfisher Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 -2.06 -2.28 -2.30 -2.35 -2.24

Competitive Comparison of Kingfisher's Net-Net Working Capital

For the Home Improvement Retail subindustry, Kingfisher'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.


Kingfisher's Price-to-Net-Net-Working-Capital Distribution in the Retail - Cyclical Industry

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

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



Kingfisher Net-Net Working Capital Calculation

Kingfisher's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jan. 2024 is calculated as

Net-Net Working Capital(A: Jan. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(405.337+0.75 * 116.9+0.5 * 3702.668-6729.352
-0-0)/1864.26
=-2.35

Kingfisher's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2024 is calculated as

Net-Net Working Capital(Q: Jul. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(624.196+0.75 * 495.495+0.5 * 3833.977-7009.009
-0-0)/1828.72
=-2.24

* 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.


Kingfisher  (OTCPK:KGFHF) 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.


Kingfisher Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Kingfisher's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Kingfisher Business Description

Address
1 Paddington Square, London, GBR, W2 1GG
Kingfisher is a home improvement company with over 1,570 stores in eight countries across Europe. The company operates several retail banners that are focused on trade customers and general do-it-yourself needs. Kingfisher's main retail brands include B&Q, Screwfix, and TradePoint in the United Kingdom and Castorama and Brico Depot in France. The UK and France are Kingfisher's largest markets, accounting for 81% of sales. The company is the second-largest DIY retailer in Europe, with a leading position in the UK and a number-two position in France.

Kingfisher Headlines