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LVRO (Lavoro) Net-Net Working Capital : $-5.33 (As of Jun. 2024)


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What is Lavoro 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.

Lavoro's Net-Net Working Capital for the quarter that ended in Jun. 2024 was $-5.33.

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

LVRO's Price-to-Net-Net-Working-Capital is not ranked *
in the Agriculture industry.
Industry Median: 9.285
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Lavoro Net-Net Working Capital Historical Data

The historical data trend for Lavoro'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.

Lavoro Net-Net Working Capital Chart

Lavoro Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
Net-Net Working Capital
- -1.61 -2.63 -3.83 -5.33

Lavoro Quarterly Data
Jun20 Jun21 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.83 -6.08 -6.29 -6.58 -5.33

Competitive Comparison of Lavoro's Net-Net Working Capital

For the Agricultural Inputs subindustry, Lavoro'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.


Lavoro's Price-to-Net-Net-Working-Capital Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Lavoro's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Lavoro Net-Net Working Capital Calculation

Lavoro's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2024 is calculated as

Net-Net Working Capital(A: Jun. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(169.201+0.75 * 514.242+0.5 * 330.526-1297.731
-0-43.891)/116.608
=-5.33

Lavoro's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2024 is calculated as

Net-Net Working Capital(Q: Jun. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(169.201+0.75 * 514.242+0.5 * 330.526-1297.731
-0-43.891)/116.608
=-5.33

* 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.


Lavoro  (NAS:LVRO) 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.


Lavoro Net-Net Working Capital Related Terms

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Lavoro Business Description

Traded in Other Exchanges
N/A
Address
Av. Dr. Cardoso de Melo, 1450, 4th floor, office 401, Sao Paulo, SP, BRA, 04548-005
Lavoro Ltd operates in the agricultural inputs retail market, with operations spread across Brazil and Colombia, and an emergent agricultural input trading company in Uruguay. The reportable segments of the company include the Brazil Ag Retail, which comprises companies dedicated to the distribution of agricultural inputs such as crop protection, seeds, fertilizers and specialty products, in Brazil; Latam Ag Retail, which includes companies dedicated to the distribution of agricultural inputs outside Brazil (predominantly in Colombia); and the Crop Care. A substantial part of the company's overall revenue is generated from its Brazil Ag Retail segment.