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SEM (Select Medical Holdings) Net-Net Working Capital : $-25.27 (As of Mar. 2025)


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What is Select Medical 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.

Select Medical Holdings's Net-Net Working Capital for the quarter that ended in Mar. 2025 was $-25.27.

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

SEM's Price-to-Net-Net-Working-Capital is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 7.4
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Select Medical Holdings Net-Net Working Capital Historical Data

The historical data trend for Select Medical 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.

Select Medical Holdings Net-Net Working Capital Chart

Select Medical Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -39.64 -41.15 -44.54 -44.77 -25.21

Select Medical Holdings Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -42.88 -42.60 -39.38 -25.21 -25.27

Competitive Comparison of Select Medical Holdings's Net-Net Working Capital

For the Medical Care Facilities subindustry, Select Medical 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.


Select Medical Holdings's Price-to-Net-Net-Working-Capital Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Select Medical Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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Select Medical Holdings Net-Net Working Capital Calculation

Select Medical Holdings'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)
=(59.694+0.75 * 821.385+0.5 * 0-3610.856
-0-315.74)/128.963
=-25.21

Select Medical Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2025 is calculated as

Net-Net Working Capital(Q: Mar. 2025 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(53.213+0.75 * 908.185+0.5 * 0-3649.966
-0-326.643)/128.314
=-25.27

* 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.


Select Medical Holdings  (NYSE:SEM) 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.


Select Medical Holdings Net-Net Working Capital Related Terms

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


Select Medical Holdings Business Description

Traded in Other Exchanges
Address
4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through three segments: critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics. Critical illness recovery hospitals which derives maximum revenue consists of hospitals designed to serve the needs of patients recovering from critical illnesses, often with complex medical needs. The rehabilitation hospital segment consists of hospitals designed to serve patients that require intensive physical rehabilitation care. Patients are typically admitted to critical illness recovery hospitals and rehabilitation hospitals from general acute care hospitals. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services.
Executives
Parvinderjit S. Khanuja director C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG RD, P.O. BOX 2034, MECHANICSBURG PA 17055
David S Chernow officer: Chief Executive Officer C/O JUNIOR ACHIEVEMENT INC, ONE EDUCATION WAY, COLORADO SPRINGS CO 80906
Breighner Robert G. Jr officer: Vice President, Compliance C/O SELECT MEDICAL HOLDINGS CORPORATION, 4714 GETTYSBURG ROAD, MACHANICSBURG PA 17055
Marilyn B Tavenner director 13600 BUTLERS ROAD, AMELIA COURT HOUSE VA 23002
Robert A Ortenzio director, officer: Chief Executive Officer 4718 OLD GETTYSBURG RD, POST OFFICE BOX 2034, MECHANICSBURG PA 30309
Michael F Malatesta officer: Senior Vice President, Finance C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG RD, P.O. BOX 2034, MECHANICSBURG PA 17055
Christopher Weigl officer: Chief Accounting Officer C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG ROAD, P.O. BOX 2034, MECHANICSBURG PA 17055
Michael E Tarvin officer: Executive Vice President 4716 OLD GETTYSBURG ROAD, PO BOX 2034, MECHANICSBURG PA 17055
Martin F Jackson officer: Executive Vice President 4716 OLD GETTYSBURG ROAD, PO BOX 2034, MECHANICSBURG PA 17055
Katherine R Davisson director C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG ROAD, P.O. BOX 2034, MECHANICSBURG PA 17055
Ely James S. Iii director 4000 MERIDIAN BLVD, FRANKLIN TN 37067
Scott A Romberger officer: Senior Vice President 4716 OLD GETTYSBURG ROAD, PO BOX 2034, MECHANICSBURG PA 17055
Thomas P Mullin officer: Executive Vice President C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG ROAD, P.O. BOX 2034, MECHANICSBURG PA 17055
Leopold Swergold director
Daniel Thomas director C/O SELECT MEDICAL CORPORATION, 4714 GETTYSBURG ROAD P.O. BOX 2034, MECHANICSBURG PA 17055