GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Lindsell Train Investment Trust (The) PLC (LSE:LTI) » Definitions » Net-Net Working Capital

Lindsell Train Investment Trust (The) (LSE:LTI) Net-Net Working Capital : £28.63 (As of Mar. 2024)


View and export this data going back to 2001. Start your Free Trial

What is Lindsell Train Investment Trust (The) 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.

Lindsell Train Investment Trust (The)'s Net-Net Working Capital for the quarter that ended in Mar. 2024 was £28.63.

The industry rank for Lindsell Train Investment Trust (The)'s Net-Net Working Capital or its related term are showing as below:

LSE:LTI's Price-to-Net-Net-Working-Capital is ranked worse than
78.29% of 516 companies
in the Asset Management industry
Industry Median: 6.185 vs LSE:LTI: 30.18

Lindsell Train Investment Trust (The) Net-Net Working Capital Historical Data

The historical data trend for Lindsell Train Investment Trust (The)'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.

Lindsell Train Investment Trust (The) Net-Net Working Capital Chart

Lindsell Train Investment Trust (The) Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.19 13.31 32.40 38.86 28.63

Lindsell Train Investment Trust (The) Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 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 32.40 13.19 38.86 17.38 28.63

Competitive Comparison of Lindsell Train Investment Trust (The)'s Net-Net Working Capital

For the Asset Management subindustry, Lindsell Train Investment Trust (The)'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.


Lindsell Train Investment Trust (The)'s Price-to-Net-Net-Working-Capital Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Lindsell Train Investment Trust (The)'s Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Lindsell Train Investment Trust (The)'s Price-to-Net-Net-Working-Capital falls into.



Lindsell Train Investment Trust (The) Net-Net Working Capital Calculation

Lindsell Train Investment Trust (The)'s Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2024 is calculated as

Net-Net Working Capital(A: Mar. 2024 )
=(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)
=(6.028+0+0.75 * 0+0.5 * 0-0.303
-0-0)/0.2
=28.63

Lindsell Train Investment Trust (The)'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 )
=(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)
=(6.028+0+0.75 * 0+0.5 * 0-0.303
-0-0)/0.2
=28.63

* 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.


Lindsell Train Investment Trust (The)  (LSE:LTI) 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.


Lindsell Train Investment Trust (The) Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Lindsell Train Investment Trust (The)'s Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Lindsell Train Investment Trust (The) (LSE:LTI) Business Description

Traded in Other Exchanges
N/A
Address
25 Southampton Buildings, London, GBR, WC2A 1AL
Lindsell Train Investment Trust (The) PLC is a UK-based investment trust company. Its primary investment objective is to maximize long-term total returns with a minimum objective to maintain the real purchasing power of Sterling capital. The company's investment policy is to invest in a wide range of financial assets including equities, unquoted equities, bonds, funds, cash and other financial investments globally with no limitations on the markets and sectors. It focuses on investing in a concentrated portfolio of securities with the number of equity investments averaging fifteen companies. The company holds a portfolio of equities across UK, USA, Japan, Europe.

Lindsell Train Investment Trust (The) (LSE:LTI) Headlines

No Headlines