GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Signature Eyewear Inc (OTCPK:SEYE) » Definitions » Net-Net Working Capital

Signature Eyewear (Signature Eyewear) Net-Net Working Capital : $-0.62 (As of Apr. 2011)


View and export this data going back to 1997. Start your Free Trial

What is Signature Eyewear 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.

Signature Eyewear's Net-Net Working Capital for the quarter that ended in Apr. 2011 was $-0.62.

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

SEYE's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 6.13
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Signature Eyewear Net-Net Working Capital Historical Data

The historical data trend for Signature Eyewear'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.

Signature Eyewear Net-Net Working Capital Chart

Signature Eyewear Annual Data
Trend Oct01 Oct02 Oct03 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.15 -1.00 -0.95 -0.71 -0.62

Signature Eyewear Quarterly Data
Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11
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 -0.60 -0.60 -0.62 -0.64 -0.62

Competitive Comparison of Signature Eyewear's Net-Net Working Capital

For the Medical Instruments & Supplies subindustry, Signature Eyewear'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.


Signature Eyewear's Price-to-Net-Net-Working-Capital Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Signature Eyewear's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Signature Eyewear Net-Net Working Capital Calculation

Signature Eyewear's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Oct. 2010 is calculated as

Net-Net Working Capital(A: Oct. 2010 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.43+0.75 * 2.503+0.5 * 4.115-8.672
-0.001-0)/6.95564
=-0.62

Signature Eyewear's Net-Net Working Capital (NNWC) per share for the quarter that ended in Apr. 2011 is calculated as

Net-Net Working Capital(Q: Apr. 2011 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.407+0.75 * 2.105+0.5 * 3.881-8.216
-0.001-0)/6.95564
=-0.62

* 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.


Signature Eyewear  (OTCPK:SEYE) 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.


Signature Eyewear Net-Net Working Capital Related Terms

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


Signature Eyewear (Signature Eyewear) Business Description

Traded in Other Exchanges
N/A
Address
317 Isis Avenue 207, Inglewood, CA, USA, 90301
Signature Eyewear Inc designs, markets and distributes prescription eyeglass frames and sunwear under brand name licenses. Through its partnerships with Bobby Jones, Carmen Marc Valvo, Cutter & Buck, Dakota Smith, Hart Schaffner Marx, Hickey Freeman Laura Ashley, Laura Ashley Girls, Michael Stars, and Rough Justice, and the company brings quality products and distinct designs to the optical marketplace.

Signature Eyewear (Signature Eyewear) Headlines

No Headlines