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Melstar Information Technologies (NSE:MELSTAR) Net-Net Working Capital : ₹0.00 (As of Dec. 2020)


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What is Melstar Information Technologies 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.

Melstar Information Technologies's Net-Net Working Capital for the quarter that ended in Dec. 2020 was ₹0.00.

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

NSE:MELSTAR's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.4
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Melstar Information Technologies Net-Net Working Capital Historical Data

The historical data trend for Melstar Information Technologies'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.

Melstar Information Technologies Net-Net Working Capital Chart

Melstar Information Technologies Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.47 -11.75 -14.81 -8.65 -8.72

Melstar Information Technologies Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 - -8.72 - -8.73 -

Competitive Comparison of Melstar Information Technologies's Net-Net Working Capital

For the Software - Application subindustry, Melstar Information Technologies'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.


Melstar Information Technologies's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, Melstar Information Technologies's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Melstar Information Technologies Net-Net Working Capital Calculation

Melstar Information Technologies's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2020 is calculated as

Net-Net Working Capital(A: Mar. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(12.954+0.75 * 23.843+0.5 * 0-155.428
-0-0)/14.2831
=-8.72

Melstar Information Technologies's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2020 is calculated as

Net-Net Working Capital(Q: Dec. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0+0.75 * 0+0.5 * 0-N/A
-0-0)/13.893
=N/A

* 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.


Melstar Information Technologies  (NSE:MELSTAR) 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.


Melstar Information Technologies Net-Net Working Capital Related Terms

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Melstar Information Technologies (NSE:MELSTAR) Business Description

Traded in Other Exchanges
N/A
Address
159, 5th Floor, Industry House, Reclamation, Churchgate, Mumbai, MH, IND, 400020
Melstar Information Technologies Ltd is a software service company. It is an Information Technology (IT) solution provider to the banking, insurance, government, and IT sectors. The company provides services such as application services, application development, application management, enterprise application services, Business Practices, and Technology practices.

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