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Premier Farnell (STU:PML) Net-Net Working Capital : €0.00 (As of Jul. 2015)


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What is Premier Farnell 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.

Premier Farnell's Net-Net Working Capital for the quarter that ended in Jul. 2015 was €0.00.

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

STU:PML's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 7.29
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Premier Farnell Net-Net Working Capital Historical Data

The historical data trend for Premier Farnell'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.

Premier Farnell Net-Net Working Capital Chart

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Premier Farnell Semi-Annual Data
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Competitive Comparison of Premier Farnell's Net-Net Working Capital

For the Electronics & Computer Distribution subindustry, Premier Farnell'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.


Premier Farnell's Price-to-Net-Net-Working-Capital Distribution in the Hardware Industry

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

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


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Premier Farnell Net-Net Working Capital Calculation

Premier Farnell's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jan. 2015 is calculated as

Net-Net Working Capital(A: Jan. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(60.27+0.75 * 160.198+0.5 * 340.356-674.711
-11.089-0)/0
=N/A

Premier Farnell's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2015 is calculated as

Net-Net Working Capital(Q: Jul. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(75.208+0.75 * 193.251+0.5 * 352.008-699.068
-12.016-0)/0
=N/A

* 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.


Premier Farnell  (STU:PML) 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.


Premier Farnell Net-Net Working Capital Related Terms

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Premier Farnell Business Description

Traded in Other Exchanges
N/A
Address
Premier Farnell PLC was incorporated on April 6, 1966 and is domiciled in the UK. The Company's business activities are providing electronic, electrical and industrial products and services to the design, maintenance and repair sectors. The Company is organized into two reportable business segments: the Marketing and Distribution Division, comprising the Americas, Europe and Asia Pacific and Other Distribution Businesses, and the Industrial Products Division. The Marketing and Distribution Division (MDD) supports customers around the world who range from engineers to purchasing professionals and electronics enthusiasts. MDD includes both the element14 businesses in Americas, Europe and Asia Pacific as well as CPC and MCM. The Industrial Products Division comprises Akron Brass, an innovator in life safety and the world leader in the manufacture of high-performance components for fire-fighting.

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