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Ground Rentsome Fund (LSE:GRIO) Net-Net Working Capital : £-0.23 (As of Sep. 2022)


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What is Ground Rentsome Fund 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.

Ground Rentsome Fund's Net-Net Working Capital for the quarter that ended in Sep. 2022 was £-0.23.

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

LSE:GRIO's Price-to-Net-Net-Working-Capital is not ranked *
in the REITs industry.
Industry Median: 14.72
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Ground Rentsome Fund Net-Net Working Capital Historical Data

The historical data trend for Ground Rentsome Fund'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.

Ground Rentsome Fund Net-Net Working Capital Chart

Ground Rentsome Fund Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Net-Net Working Capital
Get a 7-Day Free Trial -0.17 -0.16 -0.24 -0.22 -0.23

Ground Rentsome Fund Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22
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 -0.24 -0.26 -0.22 -0.24 -0.23

Competitive Comparison of Ground Rentsome Fund's Net-Net Working Capital

For the REIT - Diversified subindustry, Ground Rentsome Fund'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.


Ground Rentsome Fund's Price-to-Net-Net-Working-Capital Distribution in the REITs Industry

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

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



Ground Rentsome Fund Net-Net Working Capital Calculation

Ground Rentsome Fund's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2022 is calculated as

Net-Net Working Capital(A: Sep. 2022 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1.912+0+0.75 * 0+0.5 * 0-23.713
-0-0)/95.6676
=-0.23

Ground Rentsome Fund's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2022 is calculated as

Net-Net Working Capital(Q: Sep. 2022 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1.912+0+0.75 * 0+0.5 * 0-23.713
-0-0)/95.6676
=-0.23

* 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.


Ground Rentsome Fund  (LSE:GRIO) 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.


Ground Rentsome Fund Net-Net Working Capital Related Terms

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Ground Rentsome Fund (LSE:GRIO) Business Description

Traded in Other Exchanges
N/A
Address
1 London Wall Place, London, GBR, EC2Y 5AU
Ground Rents Income Fund PLC is a closed-ended real estate investment trust. It is involved in ground rents which include freeholds and leaseholds of residential, retail, and commercial. Its investment objective is to provide secure long-term performance through investment in long-dated UK ground rents, which have historically had little correlation to traditional property asset classes and have seen their value remain consistent regardless of the underlying state of the economy. It also offers a commission on insurance policies. The majority of the revenue is earned by the income received from the ground rent.

Ground Rentsome Fund (LSE:GRIO) Headlines

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