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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.
Response Genetics's Net-Net Working Capital for the quarter that ended in Dec. 2015 was $0.63.
The industry rank for Response Genetics's Net-Net Working Capital or its related term are showing as below:
RGDXQ's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 5.8 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Response Genetics (OTCPK:RGDXQ) 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.
Response Genetics Net-Net Working Capital Related Terms
Response Genetics Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Response Genetics'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.
RGDXQ vs PSID, GBSN, ETAH: Net-Net Working Capital Comparison
For the Diagnostics & Research subindustry, Response Genetics'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.
Response Genetics Price-to-Net-Net-Working-Capital vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Response Genetics's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Response Genetics's Price-to-Net-Net-Working-Capital falls into.
* 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.
What does a Net-Net Working Capital of $0.63 mean?
Response Genetics (RGDXQ) has a Net-Net Working Capital of $0.63 as of Dec. 2015. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Response Genetics
Is Response Genetics' Net-Net Working Capital too high?
Response Genetics' current Net-Net Working Capital is $0.63. The Medical Diagnostics & Research industry median Net-Net Working Capital is 5.80. Response Genetics' value of $0.63 is 89.1% below this industry median.
How does Response Genetics' Net-Net Working Capital compare to PSID and GBSN?
Response Genetics' Net-Net Working Capital of $0.63 can be compared against companies in the Medical Diagnostics & Research industry. The industry median Net-Net Working Capital is 5.80. Response Genetics' value of $0.63 is 89.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Medical Diagnostics & Research company?
The median Net-Net Working Capital among Medical Diagnostics & Research companies is 5.80, based on 79 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Response Genetics's current Net-Net Working Capital of $0.63 is 89.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Response Genetics For the Medical Diagnostics & Research industry, the median Net-Net Working Capital is 5.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Response Genetics's current Net-Net Working Capital is $0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Response Genetics stock overvalued right now?
Response Genetics (RGDXQ) has a current Net-Net Working Capital of $0.63. The current Net-Net Working Capital is $0.63 and 89.1% below the Medical Diagnostics & Research industry median of 5.80. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Response Genetics (RGDXQ), the current Net-Net Working Capital is $0.63 as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Response Genetics Inc develops and sells diagnostic tests. It provides molecular- and biomarker-based tests and services which enables physicians to personalize the clinical management of each individual patient by providing genomic information to diagnose, monitor and inform cancer treatment. The group generates revenue from providing Biopharma Services, Clinical Services, and Discovery Services, of which majority of the revenue is derived from providing Biopharma Services. Biopharma services provide companies with customized solutions for patient stratification and treatment selection through molecular- and biomarker-based testing services, customized assay development and trial design consultation. The firm operates in the US and internationally and generates prime revenue from the US.
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