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Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Net-Net Working Capital : KWD-0.21 (As of Mar. 2024)


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What is Al-Arabiya Real Estate Co KSC 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.

Al-Arabiya Real Estate Co KSC's Net-Net Working Capital for the quarter that ended in Mar. 2024 was KWD-0.21.

The industry rank for Al-Arabiya Real Estate Co KSC's Net-Net Working Capital or its related term are showing as below:

KUW:ARABREC's Price-to-Net-Net-Working-Capital is not ranked *
in the Real Estate industry.
Industry Median: 4.59
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Al-Arabiya Real Estate Co KSC Net-Net Working Capital Historical Data

The historical data trend for Al-Arabiya Real Estate Co KSC'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.

Al-Arabiya Real Estate Co KSC Net-Net Working Capital Chart

Al-Arabiya Real Estate Co KSC Annual Data
Trend Dec10 Dec11 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.24 -0.28 -0.27 -0.27 -0.22

Al-Arabiya Real Estate Co KSC Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -0.26 -0.25 -0.23 -0.22 -0.21

Competitive Comparison of Al-Arabiya Real Estate Co KSC's Net-Net Working Capital

For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC'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.


Al-Arabiya Real Estate Co KSC's Price-to-Net-Net-Working-Capital Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Al-Arabiya Real Estate Co KSC's Price-to-Net-Net-Working-Capital falls into.



Al-Arabiya Real Estate Co KSC Net-Net Working Capital Calculation

Al-Arabiya Real Estate Co KSC's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.039+0.75 * 3.622+0.5 * 0-85.779
-0-0)/362.584
=-0.22

Al-Arabiya Real Estate Co KSC's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(3.325+0.75 * 4.782+0.5 * 0-83.211
-0-0)/362.584
=-0.21

* 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.


Al-Arabiya Real Estate Co KSC  (KUW:ARABREC) 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.


Al-Arabiya Real Estate Co KSC Net-Net Working Capital Related Terms

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Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Business Description

Traded in Other Exchanges
N/A
Address
Ahmad Al-Jaber Street, 7th Floor, Emad Commercial Center, PO Box 26980, Sharq, Safat, Kuwait City, KWT, 13130
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.

Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Headlines

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