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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.
Sonic Foundry's Net-Net Working Capital for the quarter that ended in Sep. 2023 was $-1.75.
The industry rank for Sonic Foundry's Net-Net Working Capital or its related term are showing as below:
SOFO's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 6.94 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Sonic Foundry (OTCPK:SOFO) 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.
Sonic Foundry Net-Net Working Capital Related Terms
Sonic Foundry Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Sonic Foundry'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.
SOFO vs EBIXQ, WOWI, DUUO: Net-Net Working Capital Comparison
For the Software - Application subindustry, Sonic Foundry'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.
Sonic Foundry Price-to-Net-Net-Working-Capital vs Software Industry
For the Software industry and Technology sector, Sonic Foundry's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Sonic Foundry's Price-to-Net-Net-Working-Capital falls into.
* 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 $-1.75 mean?
Sonic Foundry (SOFO) has a Net-Net Working Capital of $-1.75 as of Sep. 2023. 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 Sonic Foundry
Is Sonic Foundry's Net-Net Working Capital too high?
Sonic Foundry's current Net-Net Working Capital is $-1.75. Overall, Sonic Foundry has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sonic Foundry's Net-Net Working Capital compare to EBIXQ and WOWI?
Sonic Foundry's Net-Net Working Capital of $-1.75 can be compared against companies in the Software industry. The industry median Net-Net Working Capital is 6.94. 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 Software company?
The median Net-Net Working Capital among Software companies is 6.94, based on 1,227 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 Sonic Foundry For the Software industry, the median Net-Net Working Capital is 6.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Foundry's current Net-Net Working Capital is $-1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Foundry stock overvalued right now?
Sonic Foundry (SOFO) has a current Net-Net Working Capital of $-1.75. The current Net-Net Working Capital is $-1.75. Sonic Foundry's overall GF Score™ is 12/100. 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 Sonic Foundry (SOFO), the current Net-Net Working Capital is $-1.75 as of Sep. 2023. 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.
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and streaming solutions as well as virtual and hybrid events in education, business, and government. Sonic Foundry's family of brands includes Mediasite, Video Solutions, Vidable and Global Learning Exchange. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
12GF Score
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