ROSGQ (Rosetta Genomics) Net-Net Working Capital: $-1.32 (As of Jun. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Rosetta Genomics Net-Net Working Capital?

Rosetta Genomics ROSGQ Net-Net Working Capital is $-1.32 as of Jun. 2017.

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.

Rosetta Genomics's Net-Net Working Capital for the quarter that ended in Jun. 2017 was $-1.32.

The industry rank for Rosetta Genomics's Net-Net Working Capital or its related term are showing as below:

ROSGQ's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 5.75
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Rosetta Genomics  (OTCPK:ROSGQ) 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.


Rosetta Genomics Net-Net Working Capital Related Terms


Rosetta Genomics Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Rosetta Genomics'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.

Rosetta Genomics Net-Net Working Capital Chart

Rosetta Genomics Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.57 16.83 6.09 7.23 0.41

Rosetta Genomics Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
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 4.13 7.23 4.28 0.41 -1.32

ROSGQ vs TEAR, IDTA, ABMC: Net-Net Working Capital Comparison

For the Diagnostics & Research subindustry, Rosetta Genomics'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.


Rosetta Genomics Price-to-Net-Net-Working-Capital vs Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Rosetta Genomics's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Rosetta Genomics's Price-to-Net-Net-Working-Capital falls into.



Rosetta Genomics Net-Net Working Capital Calculation

Rosetta Genomics's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2016 is calculated as

Net-Net Working Capital(A: Dec. 2016 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(6.163+0.75 * 2.851+0.5 * 0-7.544
-0-0)/1.844
=0.41

Rosetta Genomics's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2017 is calculated as

Net-Net Working Capital(Q: Jun. 2017 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1.325+0.75 * 0.472+0.5 * 0-5.108
-0-0)/2.588
=-1.32

* 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 $-1.32 mean?
Rosetta Genomics (ROSGQ) has a Net-Net Working Capital of $-1.32 as of Jun. 2017. 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 Rosetta Genomics
Is Rosetta Genomics' Net-Net Working Capital too high?
Rosetta Genomics' current Net-Net Working Capital is $-1.32.
How does Rosetta Genomics' Net-Net Working Capital compare to TEAR and IDTA?
Rosetta Genomics' Net-Net Working Capital of $-1.32 can be compared against companies in the Medical Diagnostics & Research industry. The industry median Net-Net Working Capital is 5.75. 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 5.75, 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. 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 Rosetta Genomics For the Medical Diagnostics & Research industry, the median Net-Net Working Capital is 5.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rosetta Genomics's current Net-Net Working Capital is $-1.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rosetta Genomics stock overvalued right now?
Rosetta Genomics (ROSGQ) has a current Net-Net Working Capital of $-1.32. The current Net-Net Working Capital is $-1.32. 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 Rosetta Genomics (ROSGQ), the current Net-Net Working Capital is $-1.32 as of Jun. 2017. 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.

Rosetta Genomics Business Description

Address 10 Plaut Street, Science Park, Rehovot, ISR, 76706
Rosetta Genomics Ltd is an Israel based genomic diagnostics company operating globally. It is focused on research and development on diagnostics and therapeutics in the field of microRNAs. The firm markets and sells four diagnostic tests based on its microRNA technologies namely, RosettaGX Cancer Origin for the identification of the primary site of metastatic cancer, mi-LUNG, mi-KIDNEY which is a microRNA-based kidney tumor classification test for pathology samples and RosettaGx Reveal which is a microRNA-based assay for the diagnosis of indeterminate thyroid fine-needle aspirate samples. Its revenues include Clinical testing revenues and Licensing revenues, of which Clinical testing revenue is maximum. The group generates its revenues mainly from diagnosing patient tissue.