Hempalta (TSXV:HEMP) Net-Net Working Capital : C$0.01 (As of Mar. 2024)

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What is Hempalta 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.

Hempalta's Net-Net Working Capital for the quarter that ended in Mar. 2024 was C$0.01.

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

TSXV:HEMP's Price-to-Net-Net-Working-Capital is ranked worse than
71.93% of 595 companies
in the Consumer Packaged Goods industry
Industry Median: 7.25 vs TSXV:HEMP: 15.50

Hempalta Net-Net Working Capital Historical Data

The historical data trend for Hempalta'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.

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Hempalta Net-Net Working Capital Chart

Hempalta Annual Data

Trend

Net-Net Working Capital

Hempalta Quarterly Data
	Dec22	Mar23	Dec23	Mar24
Net-Net Working Capital	-	-	-0.03	0.01

Competitive Comparison of Hempalta's Net-Net Working Capital

For the Farm Products subindustry, Hempalta'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.

Hempalta's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hempalta's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Hempalta Net-Net Working Capital Calculation

Hempalta's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in . 20 is calculated as

	Net-Net Working Capital		(A: . 20 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(	+	0.75 *	+	0.5 *	-	N/A
-		-	)	/	0
=	N/A

Hempalta'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)
=	(2.695	+	0.75 * 0.127	+	0.5 * 0.527	-	2.141
-	0	-	0)	/	82.4033
=	0.01

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.

Hempalta (TSXV:HEMP) 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.

Hempalta Net-Net Working Capital Related Terms

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