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RMCO (Royalty Management Holding) Net-Net Working Capital : $-0.19 (As of Sep. 2024)


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What is Royalty Management Holding 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.

Royalty Management Holding's Net-Net Working Capital for the quarter that ended in Sep. 2024 was $-0.19.

The industry rank for Royalty Management Holding's Net-Net Working Capital or its related term are showing as below:

RMCO's Price-to-Net-Net-Working-Capital is not ranked *
in the Asset Management industry.
Industry Median: 6.58
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Royalty Management Holding Net-Net Working Capital Historical Data

The historical data trend for Royalty Management Holding'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.

Royalty Management Holding Net-Net Working Capital Chart

Royalty Management Holding Annual Data
Trend Dec21 Dec22 Dec23
Net-Net Working Capital
- -0.26 -0.24

Royalty Management Holding Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.37 -0.24 -0.22 -0.18 -0.19

Competitive Comparison of Royalty Management Holding's Net-Net Working Capital

For the Asset Management subindustry, Royalty Management Holding'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.


Royalty Management Holding's Price-to-Net-Net-Working-Capital Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Royalty Management Holding's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Royalty Management Holding's Price-to-Net-Net-Working-Capital falls into.


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Royalty Management Holding Net-Net Working Capital Calculation

Royalty Management Holding's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.195+0.75 * 0.38+0.5 * 0-3.926
-0-0)/14.271
=-0.24

Royalty Management Holding's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.145+0.75 * 0.498+0.5 * 0-1.846
-1.506-0)/14.933
=-0.19

* 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.


Royalty Management Holding  (NAS:RMCO) 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.


Royalty Management Holding Net-Net Working Capital Related Terms

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Royalty Management Holding Business Description

Traded in Other Exchanges
N/A
Address
12115 Visionary Way, Unit 174, Fishers, IN, USA, 46038
Royalty Management Holding Corp formed to invest or purchase assets that have current or near-term income to provide the company with accretive cash flow from which it can reinvest in new assets or expand cash flow from existing assets. These assets typically are natural resources assets (including real estate and mining permits), patents, intellectual property, and emerging technologies.
Executives
Thomas M. Sauve director 8856 SOUTH STREET, FISHERS IN 46038
Aqr Arbitrage Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Aqr Capital Management Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Aqr Capital Management Holdings, Llc 10 percent owner ONE GREENWICH PLAZA, GREENWICH CT 06830
Mark C. Jensen director, officer: Chairman and CEO 8856 SOUTH STREET, FISHERS IN 46038
Kirk Patrick Taylor director, officer: President and CFO 8856 SOUTH STREET, FISHERS IN 46038

Royalty Management Holding Headlines

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