Zenith Energy (LSE:ZEN) Net-Net Working Capital : £-0.42 (As of Sep. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Zenith Energy 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.

Zenith Energy's Net-Net Working Capital for the quarter that ended in Sep. 2023 was £-0.42.

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

LSE:ZEN's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Oil & Gas industry.
Industry Median: 5.51
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Zenith Energy Net-Net Working Capital Historical Data

The historical data trend for Zenith Energy'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.

Zenith Energy Net-Net Working Capital Chart

Zenith Energy Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Net-Net Working Capital

Get a 7-Day Free Trial

-10.43

-0.26

-0.45

-0.47

-0.41

Zenith Energy Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Net-Net Working Capital	Get a 7-Day Free Trial															-0.44	-0.47	-0.41	-0.41	-0.42

Competitive Comparison of Zenith Energy's Net-Net Working Capital

For the Oil & Gas E&P subindustry, Zenith Energy'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.

Zenith Energy's Price-to-Net-Net-Working-Capital Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Zenith Energy's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Zenith Energy Net-Net Working Capital Calculation

Zenith Energy's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(A: Mar. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0.868	+	0.75 * 7.088	+	0.5 * 3.883	-	103.133
-	0	-	0)	/	231.03
=	-0.41

Zenith Energy's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

	Net-Net Working Capital		(Q: Sep. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0.503	+	0.75 * 8.689	+	0.5 * 3.909	-	106.286
-	0	-	0)	/	231.03
=	-0.42

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.

Zenith Energy (LSE:ZEN) 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.

Zenith Energy Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Zenith Energy's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Zenith Energy (LSE:ZEN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Zenith Energy Ltd (LSE:ZEN) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

ZENAF:USA ZENA:Norway ZCL:Germany

Address

421 - 7th Avenue SW, Suite 4000, Calgary, AB, CAN, T2P 4K9

Website

https://www.zenithenergy.ca

Zenith Energy Ltd is an international independent oil and gas company with production, exploration and development assets in the Republic of the Congo, Italy and Tunisia. The company's strategic focus is the development of proven revenue generating oil production assets, as well as low-risk exploration activities in assets with existing production.