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Wolfson Microelectronics (LSE:WLF) Net-Net Working Capital : £0.06 (As of Mar. 2014)


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What is Wolfson Microelectronics 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.

Wolfson Microelectronics's Net-Net Working Capital for the quarter that ended in Mar. 2014 was £0.06.

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

LSE:WLF's Price-to-Net-Net-Working-Capital is not ranked *
in the Semiconductors industry.
Industry Median: 8.31
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Wolfson Microelectronics Net-Net Working Capital Historical Data

The historical data trend for Wolfson Microelectronics'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.

Wolfson Microelectronics Net-Net Working Capital Chart

Wolfson Microelectronics Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec12 Dec13
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.45 0.27 0.49 0.24 0.17

Wolfson Microelectronics Quarterly Data
Mar09 Jun09 Sep09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14
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 0.06 0.06 0.07 0.17 0.06

Competitive Comparison of Wolfson Microelectronics's Net-Net Working Capital

For the Semiconductor Equipment & Materials subindustry, Wolfson Microelectronics'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.


Wolfson Microelectronics's Price-to-Net-Net-Working-Capital Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Wolfson Microelectronics's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Wolfson Microelectronics Net-Net Working Capital Calculation

Wolfson Microelectronics's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2013 is calculated as

Net-Net Working Capital(A: Dec. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(17.247+0.75 * 15.535+0.5 * 14.775-16.121
-0-0)/116.78
=0.17

Wolfson Microelectronics's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2014 is calculated as

Net-Net Working Capital(Q: Mar. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(16.363+0.75 * 0+0.5 * 16.472-17.344
-0-0)/116.787
=0.06

* 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.


Wolfson Microelectronics  (LSE:WLF) 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.


Wolfson Microelectronics Net-Net Working Capital Related Terms

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Wolfson Microelectronics (LSE:WLF) Business Description

Traded in Other Exchanges
N/A
Address
Wolfson Microelectronics PLC supplies high performance mixed-signal semiconductors to the consumer electronics market. The company's two segments are Audio Hubs and Discrete and Power Products. Audio Hubs includes the supply and sale of Audio Hubs high performance audio integrated circuit solutions. Discrete and Power Products includes the supply and sale of integrated circuits which are discrete components. The company operates in Japan, Asia Pacific, Americas and Europe.

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