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Sonic Corp  (NAS:SONC) Net Cash per Share: \$-16.31 (As of May. 2017)

Net cash per share is calculated as Cash And Cash Equivalents minus Total Liabilities and then divided by Shares Outstanding (Diluted Average). Sonic Corp's net cash per share for the quarter that ended in May. 2017 was \$-16.31.

Historical Data

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

Sonic Corp Annual Data

 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Net Cash per Share 0.00 0.00 0.00 0.00 0.00

Sonic Corp Quarterly Data

 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 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.

Sonic Corp's Net Cash Per Share for the fiscal year that ended in Aug. 2016 is calculated as

 Net Cash Per Share (A: Aug. 2016 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (72.092 - 735.638) / 46.64 = -14.23

Sonic Corp's Net Cash Per Share for the quarter that ended in May. 2017 is calculated as

 Net Cash Per Share (Q: May. 2017 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (52.05 - 736.932) / 41.98 = -16.31

* 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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