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WLSI (Wellstar International) Net-Net Working Capital : $-0.01 (As of Oct. 2010)


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What is Wellstar International 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.

Wellstar International's Net-Net Working Capital for the quarter that ended in Oct. 2010 was $-0.01.

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

WLSI's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 6.94
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Wellstar International Net-Net Working Capital Historical Data

The historical data trend for Wellstar International'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.

Wellstar International Net-Net Working Capital Chart

Wellstar International Annual Data
Trend Jul04 Jul06 Jul07 Jul08 Jul09 Jul10
Net-Net Working Capital
Get a 7-Day Free Trial -7.31 -8.59 -2.72 -1.37 -0.02

Wellstar International Quarterly Data
Jan06 Apr06 Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10
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 -0.35 -0.13 -0.04 -0.02 -0.01

Competitive Comparison of Wellstar International's Net-Net Working Capital

For the Medical Devices subindustry, Wellstar International'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.


Wellstar International's Price-to-Net-Net-Working-Capital Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Wellstar International's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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


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Wellstar International Net-Net Working Capital Calculation

Wellstar International's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jul. 2010 is calculated as

Net-Net Working Capital(A: Jul. 2010 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0+0.75 * 0+0.5 * 0-55.991
-0-0)/3565.369
=-0.02

Wellstar International's Net-Net Working Capital (NNWC) per share for the quarter that ended in Oct. 2010 is calculated as

Net-Net Working Capital(Q: Oct. 2010 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.151+0.75 * 0+0.5 * 0-58.883
-0-0)/6293.984
=-0.01

* 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.


Wellstar International  (OTCPK:WLSI) 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.


Wellstar International Net-Net Working Capital Related Terms

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Wellstar International Business Description

Traded in Other Exchanges
N/A
Address
6911 Pilliod Road, Holland, OH, USA, 43528
Wellstar International Inc through its wholly owned subsidiary, Trillennium Medical Imaging, Inc. is engaged in developing and licensing the use of advanced thermal imaging technology (TMI SYSTEM) in the consumer health care markets worldwide.

Wellstar International Headlines

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