GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Peoples Educational Holdings Inc (OTCPK:PEDH) » Definitions » Net-Net Working Capital

PEDH (Peoples Educational Holdings) Net-Net Working Capital : $-2.94 (As of May. 2012)


View and export this data going back to 2004. Start your Free Trial

What is Peoples Educational Holdings 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.

Peoples Educational Holdings's Net-Net Working Capital for the quarter that ended in May. 2012 was $-2.94.

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

PEDH's Price-to-Net-Net-Working-Capital is not ranked *
in the Media - Diversified industry.
Industry Median: 4.685
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Peoples Educational Holdings Net-Net Working Capital Historical Data

The historical data trend for Peoples Educational Holdings'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.

Peoples Educational Holdings Net-Net Working Capital Chart

Peoples Educational Holdings Annual Data
Trend Dec02 Dec03 Dec04 Dec05 May07 May08 May09 May10 May11 May12
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.83 -3.34 -2.78 -2.74 -2.94

Peoples Educational Holdings Quarterly Data
Aug07 Nov07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12
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 -2.74 -2.38 -2.44 -2.64 -2.94

Competitive Comparison of Peoples Educational Holdings's Net-Net Working Capital

For the Publishing subindustry, Peoples Educational Holdings'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.


Peoples Educational Holdings's Price-to-Net-Net-Working-Capital Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Peoples Educational Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Peoples Educational Holdings Net-Net Working Capital Calculation

Peoples Educational Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in May. 2012 is calculated as

Net-Net Working Capital(A: May. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.665+0.75 * 1.928+0.5 * 1.167-15.829
-0-0)/4.4652
=-2.94

Peoples Educational Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in May. 2012 is calculated as

Net-Net Working Capital(Q: May. 2012 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.665+0.75 * 1.928+0.5 * 1.167-15.829
-0-0)/4.4652
=-2.94

* 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.


Peoples Educational Holdings  (OTCPK:PEDH) 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.


Peoples Educational Holdings Net-Net Working Capital Related Terms

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


Peoples Educational Holdings Business Description

Traded in Other Exchanges
N/A
Address
299 Market Street, Saddle Brook, NJ, USA, 07663
Peoples Educational Holdings Inc develops and sells proprietary print and digital education products which are predominantly state-specific and standards-based, focused on state-required tests. The company operates through Test Preparation, Assessment, and Instruction Product Group. Test Preparation and Assessment segment create and sell print and digital products targeted to grades 1-12 to help students prepare for state proficiency tests. Instruction segment includes two product lines Focused Instruction and remedial and multicultural-related materials. Geographically, the business activities are carried out through United States.
Executives
Tony Christianson director, 10 percent owner
Gordon Stofer 10 percent owner

Peoples Educational Holdings Headlines

No Headlines