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RXT (Rackspace Technology) Net-Net Working Capital : $-16.11 (As of Dec. 2024)


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What is Rackspace Technology 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.

Rackspace Technology's Net-Net Working Capital for the quarter that ended in Dec. 2024 was $-16.11.

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

RXT's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.59
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Rackspace Technology Net-Net Working Capital Historical Data

The historical data trend for Rackspace Technology'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.

Rackspace Technology Net-Net Working Capital Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Net-Net Working Capital
Get a 7-Day Free Trial -22.43 -21.37 -19.57 -17.48 -16.11

Rackspace Technology Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -17.48 -16.97 -16.48 -17.04 -16.11

Competitive Comparison of Rackspace Technology's Net-Net Working Capital

For the Software - Infrastructure subindustry, Rackspace Technology'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.


Rackspace Technology's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, Rackspace Technology's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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Rackspace Technology Net-Net Working Capital Calculation

Rackspace Technology's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2024 is calculated as

Net-Net Working Capital(A: Dec. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(144+0.75 * 298.8+0.5 * 0-4058.3
-0-0)/229.100
=-16.11

Rackspace Technology's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2024 is calculated as

Net-Net Working Capital(Q: Dec. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(144+0.75 * 298.8+0.5 * 0-4058.3
-0-0)/229.100
=-16.11

* 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.


Rackspace Technology  (NAS:RXT) 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.


Rackspace Technology Net-Net Working Capital Related Terms

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Rackspace Technology Business Description

Traded in Other Exchanges
N/A
Address
19122 US Highway 281 North, Suite 128, San Antonio, TX, USA, 78258
Rackspace Technology Inc is an end-to-end, hybrid, multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in segments namely, Private Cloud, and Public Cloud. It generates revenue through the sale of consumption-based contracts for its service offerings and from the sale of professional services related to designing and building custom solutions.
Executives
Amar Maletira officer: President & CFO C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Srini Koushik officer: Chief Technology Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha officer: EVP, President, Public Cloud C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Mark A. Marino other: Vice President & CAO 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Kellie Teal-guess officer: Chief Human Resources Officer 1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Anthony C. Roberts director 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Brian Lillie officer: EVP, President Private Cloud 1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Casey L. Shilling officer: SVP - Chief Marketing Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc. director 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony Scott director 25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Betsy S Atkins director
Naushaza Molu officer: EVP, Chief Financial Officer 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir officer: SVP - Chief Operations Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos director C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035