GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Weichai Power Co Ltd (SZSE:000338) » Definitions » Net-Net Working Capital

Weichai Power Co (SZSE:000338) Net-Net Working Capital : ¥-12.90 (As of Mar. 2024)


View and export this data going back to 2007. Start your Free Trial

What is Weichai Power Co 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.

Weichai Power Co's Net-Net Working Capital for the quarter that ended in Mar. 2024 was ¥-12.90.

The industry rank for Weichai Power Co's Net-Net Working Capital or its related term are showing as below:

SZSE:000338's Price-to-Net-Net-Working-Capital is not ranked *
in the Industrial Products industry.
Industry Median: 6.93
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Weichai Power Co Net-Net Working Capital Historical Data

The historical data trend for Weichai Power Co'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.

Weichai Power Co Net-Net Working Capital Chart

Weichai Power Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.53 -15.65 -11.89 -12.04 -13.05

Weichai Power Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -12.76 -13.35 -13.38 -13.05 -12.90

Competitive Comparison of Weichai Power Co's Net-Net Working Capital

For the Specialty Industrial Machinery subindustry, Weichai Power Co'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.


Weichai Power Co's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Weichai Power Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Weichai Power Co's Price-to-Net-Net-Working-Capital falls into.



Weichai Power Co Net-Net Working Capital Calculation

Weichai Power Co's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(104279.302+0.75 * 23753.999+0.5 * 37930.386-221561.478
-0-33350.535)/8726.56
=-13.05

Weichai Power Co's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(98162.172+0.75 * 34343.719+0.5 * 38790.639-222067.633
-0-33851.391)/8726.56
=-12.90

* 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.


Weichai Power Co  (SZSE:000338) 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.


Weichai Power Co Net-Net Working Capital Related Terms

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


Weichai Power Co (SZSE:000338) Business Description

Traded in Other Exchanges
Address
197, Section A, Fu Shou East Street, High Technology Industrial Development Zone, Shandong Province, Weifang, CHN, 261061
Weichai Power Co Ltd is an industrial technology company that offers vehicles, equipment, and logistics and supply chain services in China. The operating segments of the company are 1) Engines segment includes the manufacturing and sale of engines and related parts; 2) Automobiles and automobile components include the manufacturing and sale of automobiles and automobile components other than Engines; 3) Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles and related parts; 4) Intelligent logistics includes forklift trucks production, warehousing technology and supply chain solution services.
Executives
Yan Jian Bo Directors, executives
Zhang Ji Yuan Executives
Li Shao Hua Executives
Ren Bing Bing Executives
Cao Zhi Yue Executives
Yuan Hong Ming Directors, executives
Yang Shi Hang Director
Zhang Zhen Hua Independent director
Wang Yue Pu Director
Liu Xin Hua Executives
Zhou Zhi Jun Executives
Li Zhi Executives

Weichai Power Co (SZSE:000338) Headlines

No Headlines