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Low & Bonar (LSE:BD90.PFD) Net-Net Working Capital : £-0.31 (As of Nov. 2019)


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What is Low & Bonar 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.

Low & Bonar's Net-Net Working Capital for the quarter that ended in Nov. 2019 was £-0.31.

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

LSE:BD90.PFD's Price-to-Net-Net-Working-Capital is not ranked *
in the Building Materials industry.
Industry Median: 7.67
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Low & Bonar Net-Net Working Capital Historical Data

The historical data trend for Low & Bonar'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.

Low & Bonar Net-Net Working Capital Chart

Low & Bonar Annual Data
Trend Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.40 -0.45 -0.50 -0.50 -0.31

Low & Bonar Semi-Annual Data
May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19
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 -0.50 -0.49 -0.50 -0.36 -0.31

Competitive Comparison of Low & Bonar's Net-Net Working Capital

For the Building Materials subindustry, Low & Bonar'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.


Low & Bonar's Price-to-Net-Net-Working-Capital Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Low & Bonar's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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Low & Bonar Net-Net Working Capital Calculation

Low & Bonar's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Nov. 2019 is calculated as

Net-Net Working Capital(A: Nov. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(29.8+0.75 * 43.7+0.5 * 78.2-200.7
-0-3.4)/326.290
=-0.31

Low & Bonar's Net-Net Working Capital (NNWC) per share for the quarter that ended in Nov. 2019 is calculated as

Net-Net Working Capital(Q: Nov. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(29.8+0.75 * 43.7+0.5 * 78.2-200.7
-0-3.4)/327.460
=-0.31

* 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.


Low & Bonar  (LSE:BD90.PFD) 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.


Low & Bonar Net-Net Working Capital Related Terms

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Low & Bonar Business Description

Traded in Other Exchanges
N/A
Address
One Connaught Place, London, GBR, W2 2ET
Low & Bonar PLC manufactures and supplies performance materials to create yarns, fibers, industrial and coated fabrics, and composite materials. Its reportable segments include the Colbond segment, selling products to the building, flooring, industrial and automotive industries, and comprising the Group's Colback and Enka technologies, along with the woven product produced in China. This segment comprises three business segments, organized regionally, being EMEA, APAC and the Americas. The Coated Technical Textiles segment producing coated fabrics. The majority of the revenue is derived from Colbond segment.

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