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NetCents Technology (XCNQ:NC) Net-Net Working Capital : C$-0.06 (As of Jul. 2020)


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What is NetCents Technology 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.

NetCents Technology's Net-Net Working Capital for the quarter that ended in Jul. 2020 was C$-0.06.

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

XCNQ:NC's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.43
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

NetCents Technology Net-Net Working Capital Historical Data

The historical data trend for NetCents Technology'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.

NetCents Technology Net-Net Working Capital Chart

NetCents Technology Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19
Net-Net Working Capital
-0.02 -0.05 -0.06 -0.14 -0.11

NetCents Technology Quarterly Data
Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
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 -0.08 -0.11 -0.12 -0.11 -0.06

Competitive Comparison of NetCents Technology's Net-Net Working Capital

For the Software - Infrastructure subindustry, NetCents Technology'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.


NetCents Technology's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, NetCents Technology's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



NetCents Technology Net-Net Working Capital Calculation

NetCents Technology's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Oct. 2019 is calculated as

Net-Net Working Capital(A: Oct. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.305+0.75 * 0+0.5 * 0-6.357
-0-0)/53.9556
=-0.11

NetCents Technology's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2020 is calculated as

Net-Net Working Capital(Q: Jul. 2020 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.63+0.75 * 0+0.5 * 0-7.301
-0-0)/80.9699
=-0.06

* 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.


NetCents Technology  (XCNQ:NC) 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.


NetCents Technology Net-Net Working Capital Related Terms

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NetCents Technology (XCNQ:NC) Business Description

Traded in Other Exchanges
N/A
Address
350-375 Water Street, Vancouver, BC, CAN, V6B 5C6
NetCents Technology Inc is engaged in software development for the payment processing industry. It helps in KYC, AML, IP Verification, eWallets, Merchant Gateway, Blockchain and Cryptocurrency Technology, Risk and Fraud Reduction, and Instant Settlements.