TRTI (Transtech Industries) Net-Net Working Capital: $-2.21 (As of Dec. 2009)

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What is Transtech Industries Net-Net Working Capital?

Transtech Industries TRTI +4.53% Net-Net Working Capital is $-2.21 as of Dec. 2009.

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.

Transtech Industries's Net-Net Working Capital for the quarter that ended in Dec. 2009 was $-2.21.

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

TRTI's Price-to-Net-Net-Working-Capital is not ranked *
in the Waste Management industry.
Industry Median: 6.19
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Transtech Industries  (OTCPK:TRTI) 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.


Transtech Industries Net-Net Working Capital Related Terms


Transtech Industries Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Transtech Industries'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.

Transtech Industries Net-Net Working Capital Chart

Transtech Industries Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.02 -1.68 -2.04 -2.18 -2.21

Transtech Industries Quarterly Data
Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09
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 -2.18 -2.35 -2.19 -2.30 -2.21

TRTI vs CREG, SENR, NESCQ: Net-Net Working Capital Comparison

For the Waste Management subindustry, Transtech Industries'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.


Transtech Industries Price-to-Net-Net-Working-Capital vs Waste Management Industry

For the Waste Management industry and Industrials sector, Transtech Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Transtech Industries Net-Net Working Capital Calculation

Transtech Industries's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2009 is calculated as

Net-Net Working Capital(A: Dec. 2009 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.387+0.75 * 0.031+0.5 * 0-8.982
-0-0)/2.979
=-2.21

Transtech Industries's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2009 is calculated as

Net-Net Working Capital(Q: Dec. 2009 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.387+0.75 * 0.031+0.5 * 0-8.982
-0-0)/2.979
=-2.21

* 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 $-2.21 mean?
Transtech Industries (TRTI) has a Net-Net Working Capital of $-2.21 as of Dec. 2009. 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 Transtech Industries
Is Transtech Industries' Net-Net Working Capital too high?
Transtech Industries' current Net-Net Working Capital is $-2.21.
How does Transtech Industries' Net-Net Working Capital compare to CREG and SENR?
Transtech Industries' Net-Net Working Capital of $-2.21 can be compared against companies in the Waste Management industry. The industry median Net-Net Working Capital is 6.19. 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 Waste Management company?
The median Net-Net Working Capital among Waste Management companies is 6.19, based on 59 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 Transtech Industries For the Waste Management industry, the median Net-Net Working Capital is 6.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transtech Industries's current Net-Net Working Capital is $-2.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transtech Industries stock overvalued right now?
Transtech Industries (TRTI) has a current Net-Net Working Capital of $-2.21. The current Net-Net Working Capital is $-2.21. 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 Transtech Industries (TRTI), the current Net-Net Working Capital is $-2.21 as of Dec. 2009. 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.

Transtech Industries Business Description

Address 2025 Delsea Drive, Sewell, NJ, USA, 08080
Transtech Industries Inc, through its subsidiaries, supervises and performs landfill monitoring, closure and post-closure procedures, manages methane gas recovery operations and generates electric power utilizing methane gas.