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South Bow (TSX:SOBO) Net-Net Working Capital : C$-50.17 (As of Mar. 2025)


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What is South Bow 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.

South Bow's Net-Net Working Capital for the quarter that ended in Mar. 2025 was C$-50.17.

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

TSX:SOBO's Price-to-Net-Net-Working-Capital is not ranked *
in the Oil & Gas industry.
Industry Median: 5.06
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

South Bow Net-Net Working Capital Historical Data

The historical data trend for South Bow'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.

South Bow Net-Net Working Capital Chart

South Bow Annual Data
Trend Dec23 Dec24
Net-Net Working Capital
-50.68 -50.17

South Bow Quarterly Data
Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Net-Net Working Capital Get a 7-Day Free Trial - - -80.70 -50.17 -50.17

Competitive Comparison of South Bow's Net-Net Working Capital

For the Oil & Gas Midstream subindustry, South Bow'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.


South Bow's Price-to-Net-Net-Working-Capital Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, South Bow's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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South Bow Net-Net Working Capital Calculation

South Bow's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2024 is calculated as

Net-Net Working Capital(A: Dec. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(565.606+0.75 * 1695.393+0.5 * 294.913-12421.959
-0-0)/208.041
=-50.17

South Bow's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2025 is calculated as

Net-Net Working Capital(Q: Mar. 2025 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(559.884+0.75 * 1600.694+0.5 * 206.726-12310.27
-0-0)/208.221
=-50.17

* 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.


South Bow  (TSX:SOBO) 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.


South Bow Net-Net Working Capital Related Terms

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South Bow Business Description

Industry
Traded in Other Exchanges
Address
707, 5 Street SW, Suite 900, Calgary, AB, CAN, T2P 1V8
South Bow Corp is a energy infrastructure company. The company is engaged in constructing pipelines system safely transports liquids like crude oil, across Canadian provinces, U.S. states, and Gulf coasts. It has three reportable segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other. It derives maximum revenue from Keystone Pipeline System segment.
Executives
Jennifer M. Geggie Senior Officer
P. Van R. Dafoe Senior Officer
Mark Yeomans Senior Officer
Gary M. Salsman Senior Officer
Richard Prior Senior Officer
Harold N. Kvisle Director
Lori Michelle Muratta Senior Officer
Blaine M. Trout Senior Officer
Renate Poole Senior Officer
Bevin Mark Wirzba Senior Officer
Shannon Georgina Ryhorchuk Senior Officer
Melville George Lewis Director
Marc Palazzo Senior Officer