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Albemarle & Bond Holdings (LSE:ABM) Net-Net Working Capital : £-0.17 (As of Jun. 2013)


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What is Albemarle & Bond Holdings 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.

Albemarle & Bond Holdings's Net-Net Working Capital for the quarter that ended in Jun. 2013 was £-0.17.

The industry rank for Albemarle & Bond Holdings's Net-Net Working Capital or its related term are showing as below:

LSE:ABM's Price-to-Net-Net-Working-Capital is not ranked *
in the Credit Services industry.
Industry Median: 6.55
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Albemarle & Bond Holdings Net-Net Working Capital Historical Data

The historical data trend for Albemarle & Bond Holdings'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.

Albemarle & Bond Holdings Net-Net Working Capital Chart

Albemarle & Bond Holdings Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.13 -0.06 -0.07 -0.07 -0.17

Albemarle & Bond Holdings Semi-Annual Data
Jun92 Jun93 Jun94 Jun95 Jun96 Jun97 Jun98 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
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 -0.13 -0.06 -0.07 -0.07 -0.17

Competitive Comparison of Albemarle & Bond Holdings's Net-Net Working Capital

For the Credit Services subindustry, Albemarle & Bond Holdings'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.


Albemarle & Bond Holdings's Price-to-Net-Net-Working-Capital Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Albemarle & Bond Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Albemarle & Bond Holdings's Price-to-Net-Net-Working-Capital falls into.



Albemarle & Bond Holdings Net-Net Working Capital Calculation

Albemarle & Bond Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2013 is calculated as

Net-Net Working Capital(A: Jun. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.115+0.75 * 45.008+0.5 * 20.454-63.671
-0-0)/55.663
=-0.17

Albemarle & Bond Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2013 is calculated as

Net-Net Working Capital(Q: Jun. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.115+0.75 * 45.008+0.5 * 20.454-63.671
-0-0)/55.663
=-0.17

* 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.


Albemarle & Bond Holdings  (LSE:ABM) 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.


Albemarle & Bond Holdings Net-Net Working Capital Related Terms

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Albemarle & Bond Holdings Business Description

Traded in Other Exchanges
N/A
Address
Albemarle & Bond Holdings PLC was incorporated on January 17, 1986. The Company is a holding company engaged in pawnbroking, retail jewellery sales, gold purchasing, unsecured lending, including cheque cashing and other financial services. It has approximately 230 stores and 1,000 employees. Operating under the two brands, Albemarle Bond and Herbert Brown, it provides its customers with a range of services including jewellery retailing, pawnbroking loans, gold purchasing and a range of unsecured loan products. The pawn loan is secured against jewellery for a maximum of six months. The customer can redeem their jewellery by repaying the loan and interest owing at any time without incurring penalties for early redemption. The Company provides short-term loans through three products, PayDay Advances, Speedloans, and Cheque Cashing. PayDay Advances offer customers short-term unsecured loans to meet their cash flow requirements until wages are received. Speedloans provide customers with immediately available installment loans over a longer term of between six and 18 months and Cheque Cashing provides access to their cash for customers who have received cheques. The Company offers a range of new and second hand jewellery. Herbert Brown offers a range of new, second hand and antique jewellery.