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WaterPure International (WaterPure International) Net-Net Working Capital : $-0.01 (As of Mar. 2011)


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What is WaterPure 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.

WaterPure International's Net-Net Working Capital for the quarter that ended in Mar. 2011 was $-0.01.

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

WPUR's Price-to-Net-Net-Working-Capital is not ranked *
in the Industrial Products industry.
Industry Median: 6.94
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

WaterPure International Net-Net Working Capital Historical Data

The historical data trend for WaterPure 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.

WaterPure International Net-Net Working Capital Chart

WaterPure International Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10
Net-Net Working Capital
- -0.01 -0.04 -0.02 -0.01

WaterPure International Quarterly Data
Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11
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 -0.01 -0.01 -0.01 -0.01 -0.01

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

For the Specialty Industrial Machinery subindustry, WaterPure 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.


WaterPure International's Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

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

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



WaterPure International Net-Net Working Capital Calculation

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

Net-Net Working Capital(A: Jun. 2010 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.046+0.75 * 0.001+0.5 * 0.079-1.921
-0-0)/149.032
=-0.01

WaterPure International's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2011 is calculated as

Net-Net Working Capital(Q: Mar. 2011 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.02+0.75 * 0.003+0.5 * 0.072-2.502
-0-0)/223.612
=-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.


WaterPure International  (OTCPK:WPUR) 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.


WaterPure International Net-Net Working Capital Related Terms

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WaterPure International (WaterPure International) Business Description

Traded in Other Exchanges
N/A
Address
13155 Noel Road, Suite 900, Dallas, TX, USA, 75240
WaterPure International Inc is a development stage company engaged in manufacturing and marketing atmospheric water generators to the small office, home office, and consumer markets in the United States and internationally. Its products include a POE system, Controller, Piping system among others.