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Education Management Corp  (OTCPK:EDMC) Net Cash per Share: \$-15.01 (As of Jun. 2014)

Net cash per share is calculated as Cash And Cash Equivalents minus Total Liabilities and then divided by Shares Outstanding (Diluted Average). Education Management Corp's net cash per share for the quarter that ended in Jun. 2014 was \$-15.01.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Education Management Corp Annual Data

 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Net Cash per Share 0.00 0.00 0.00 0.00 0.00

Education Management Corp Quarterly Data

 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Net Cash per Share 0.00 0.00 0.00 0.00 0.00

Calculation

In the calculation of a company's net cash, assets other than cash and short term investments are considered to be worth nothing. But the company has to pay its debt and other liabilities in full. This is an extremely conservative way of valuation. Most companies have negative net cash. But sometimes a company's price may be lower than its net-cash.

Education Management Corp's Net Cash Per Share for the fiscal year that ended in Jun. 2014 is calculated as

 Net Cash Per Share (A: Jun. 2014 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (270.567 - 2161.909) / 126.04 = -15.01

Education Management Corp's Net Cash Per Share for the quarter that ended in Jun. 2014 is calculated as

 Net Cash Per Share (Q: Jun. 2014 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (270.567 - 2161.909) / 126.04 = -15.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Ben Graham invested in situations where the company's stock price was lower than its net-cash. He assigned some value to the company's other current asset. The value is called Net Current Asset Value (NCAV). 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.

You can find companies that are traded below their Net Current Asset Value (NCAV) with our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.

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