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Starcrest Education (LSE:OBOR) Net-Net Working Capital : £-0.04 (As of Jun. 2022)


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What is Starcrest Education 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.

Starcrest Education's Net-Net Working Capital for the quarter that ended in Jun. 2022 was £-0.04.

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

LSE:OBOR's Price-to-Net-Net-Working-Capital is not ranked *
in the Education industry.
Industry Median: 6.385
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Starcrest Education Net-Net Working Capital Historical Data

The historical data trend for Starcrest Education'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.

Starcrest Education Net-Net Working Capital Chart

Starcrest Education Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Net-Net Working Capital
0.17 0.10 0.04 -0.03

Starcrest Education Semi-Annual Data
Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
Net-Net Working Capital Get a 7-Day Free Trial 0.06 0.04 0.02 -0.03 -0.04

Competitive Comparison of Starcrest Education's Net-Net Working Capital

For the Education & Training Services subindustry, Starcrest Education'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.

Starcrest Education's Price-to-Net-Net-Working-Capital Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Starcrest Education's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


Starcrest Education Net-Net Working Capital Calculation

Starcrest Education's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2021 is calculated as

Net-Net Working Capital(A: Dec. 2021 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.042+0.75 * 0.001+0.5 * 0-0.624
-0-0)/21.56
=-0.03

Starcrest Education's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2022 is calculated as

Net-Net Working Capital(Q: Jun. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.017+0.75 * 0+0.5 * 0-0.821
-0-0)/21.56
=-0.04

* 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.

Starcrest Education  (LSE:OBOR) 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.

Starcrest Education Net-Net Working Capital Related Terms

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Starcrest Education (LSE:OBOR) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Starcrest Education Ltd (LSE:OBOR) » Definitions » Net-Net Working Capital
Comparable Companies
Traded in Other Exchanges
N/A
Address
Hutchins Drive, Cricket Square, P.O. Box 2681, Grand Cayman, CYM, KY1-1111
Website
https://www.starcresteducation.com
Starcrest Education Ltd is an international developer and operator of education services in Europe. The newly formed entity has been established to seek relevant acquisitions in the international education sector.

Starcrest Education (LSE:OBOR) Headlines