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East African Breweries (NAI:EABL) Net-Net Working Capital : KES-110.80 (As of Jun. 2023)


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What is East African Breweries 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.

East African Breweries's Net-Net Working Capital for the quarter that ended in Jun. 2023 was KES-110.80.

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

NAI:EABL's Price-to-Net-Net-Working-Capital is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 8.81
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

East African Breweries Net-Net Working Capital Historical Data

The historical data trend for East African Breweries'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.

East African Breweries Net-Net Working Capital Chart

East African Breweries Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -74.94 -86.81 -98.64 -91.31 -110.80

East African Breweries Semi-Annual Data
Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
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 -74.94 -86.81 -98.64 -91.31 -110.80

Competitive Comparison of East African Breweries's Net-Net Working Capital

For the Beverages - Brewers subindustry, East African Breweries'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.


East African Breweries's Price-to-Net-Net-Working-Capital Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



East African Breweries Net-Net Working Capital Calculation

East African Breweries's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2023 is calculated as

Net-Net Working Capital(A: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10252.628+0.75 * 7905.743+0.5 * 15608.384-100849.309
-0-10332.042)/786.957
=-110.80

East African Breweries's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2023 is calculated as

Net-Net Working Capital(Q: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10252.628+0.75 * 7905.743+0.5 * 15608.384-100849.309
-0-10332.042)/786.957
=-110.80

* 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.


East African Breweries  (NAI:EABL) 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.


East African Breweries Net-Net Working Capital Related Terms

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East African Breweries (NAI:EABL) Business Description

Traded in Other Exchanges
N/A
Address
Corporate Centre, Block A, 5th Floor, P.O. Box 30161, Garden City Business Park, Ruaraka, Nairobi, KEN, 00100
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue primarily from brewing, marketing, and selling of drinks, malt and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.

East African Breweries (NAI:EABL) Headlines

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