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Paramount Dye Tec (NSE:PARAMOUNT) Net-Net Working Capital : ₹0.77 (As of Mar. 2024)


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What is Paramount Dye Tec 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.

Paramount Dye Tec's Net-Net Working Capital for the quarter that ended in Mar. 2024 was ₹0.77.

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

NSE:PARAMOUNT's Price-to-Net-Net-Working-Capital is ranked worse than
95.75% of 353 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.11 vs NSE:PARAMOUNT: 82.47

Paramount Dye Tec Net-Net Working Capital Historical Data

The historical data trend for Paramount Dye Tec'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.

Paramount Dye Tec Net-Net Working Capital Chart

Paramount Dye Tec Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital
-5.23 -10.88 -6.47 0.77

Paramount Dye Tec Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Net-Net Working Capital -5.23 -10.88 -6.47 0.77

Competitive Comparison of Paramount Dye Tec's Net-Net Working Capital

For the Textile Manufacturing subindustry, Paramount Dye Tec'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.


Paramount Dye Tec's Price-to-Net-Net-Working-Capital Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Paramount Dye Tec's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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Paramount Dye Tec Net-Net Working Capital Calculation

Paramount Dye Tec's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2024 is calculated as

Net-Net Working Capital(A: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(123.866+0.75 * 60.535+0.5 * 175.692-251.759
-0-0)/6.943
=0.77

Paramount Dye Tec's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(123.866+0.75 * 60.535+0.5 * 175.692-251.759
-0-0)/6.943
=0.77

* 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.


Paramount Dye Tec  (NSE:PARAMOUNT) 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.


Paramount Dye Tec Net-Net Working Capital Related Terms

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Paramount Dye Tec Business Description

Traded in Other Exchanges
N/A
Address
Machiwara Road, Village Mangarh, Kohara, Ludhiana, PB, IND, 141112
Paramount Dye Tec Ltd manufactures yarns by recycling synthetic fiber (recycling synthetic waste), serving the B2B segment of the textile industry. It offers a range of products including synthetic fiber and yarns which include acrylic yarn, polyester yarn, nylon yarn, wool yarn, hand-knitting yarn and acrylic blend yarn with quality, finer impact, and lasting excellence. The company utilizes synthetic waste fibers as its primary raw material, transforming them into quality yarn.

Paramount Dye Tec Headlines

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