Motive Television (LSE:MTV) Net-Net Working Capital: £-0.03 (As of Jun. 2015)

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What is Motive Television Net-Net Working Capital?

Motive Television LSE:MTV Net-Net Working Capital is £-0.03 as of Jun. 2015. The stock has 5 warning signs investors should review.

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.

Motive Television's Net-Net Working Capital for the quarter that ended in Jun. 2015 was £-0.03.

The industry rank for Motive Television's Net-Net Working Capital or its related term are showing as below:

LSE:MTV's Price-to-Net-Net-Working-Capital is not ranked *
in the Media - Diversified industry.
Industry Median: 4.37
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Motive Television  (LSE:MTV) 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.


Motive Television Net-Net Working Capital Related Terms


Motive Television Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Motive Television'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.

Motive Television Net-Net Working Capital Chart

Motive Television Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.49 -0.21 -0.10 -0.02 -0.01

Motive Television Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 -0.02 -0.02 -0.02 -0.01 -0.03

Motive Television Net-Net Working Capital Competitor Comparison

For the Broadcasting subindustry, Motive Television'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.


Motive Television Price-to-Net-Net-Working-Capital vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Motive Television's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Motive Television's Price-to-Net-Net-Working-Capital falls into.



Motive Television Net-Net Working Capital Calculation

Motive Television's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

Net-Net Working Capital(A: Dec. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.596+0.75 * 0.135+0.5 * 0.021-6.16
-0-0)/452.510
=-0.01

Motive Television's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2015 is calculated as

Net-Net Working Capital(Q: Jun. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.223+0.75 * 0+0.5 * 0.093-6.632
-0-0)/185.230
=-0.03

* 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.

What does a Net-Net Working Capital of £-0.03 mean?
Motive Television (LSE:MTV) has a Net-Net Working Capital of £-0.03 as of Jun. 2015. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Motive Television
Is Motive Television's Net-Net Working Capital too high?
Motive Television's current Net-Net Working Capital is £-0.03.
How does Motive Television's Net-Net Working Capital compare to competitors?
Motive Television's Net-Net Working Capital of £-0.03 can be compared against companies in the Media - Diversified industry. The industry median Net-Net Working Capital is 4.37. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Media - Diversified company?
The median Net-Net Working Capital among Media - Diversified companies is 4.37, based on 386 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Motive Television For the Media - Diversified industry, the median Net-Net Working Capital is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motive Television's current Net-Net Working Capital is £-0.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motive Television stock overvalued right now?
Motive Television (LSE:MTV) has a current Net-Net Working Capital of £-0.03. The current Net-Net Working Capital is £-0.03. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Motive Television (LSE:MTV), the current Net-Net Working Capital is £-0.03 as of Jun. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Motive Television Business Description

Motive Television PLC was incorporated in the United Kingdom on December 22, 2004. The Company along with its subsidiaries is engaged in providing software and services to Television Broadcasters. The Company operates in two segments including; Digital Television Technology and Television Production (Content). The Company's solution offering include Content Express and TabletTV enabling TV providers to offer audiences more, giving them a competitive edge and delivering new revenues. The Content Express enables viewers to watch whatever they want, when they want, on any screen without having to build new networks. The Content Express software provides secure delivery and management of non-linear digital content across any type of broadcast network to any consumer-facing screen. It provides one-stop shop for digital terrestrial broadcasters, satellite, DTT, and cable pay television platforms, and Internet OTT content providers to offer new services including Video on Demand, Catch-up television, Tablet Television, Targeted Advertising for VOD, Mocast for 4G LTE, and Virtual channels and Video2Go. The Tablet TV designed to address the U.S. tablet and smartphone market, meeting the demand for watching long-form video on devices.