GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Peter Warren Automotive Holdings Ltd (ASX:PWR) » Definitions » Net-Net Working Capital

Peter Warren Automotive Holdings (ASX:PWR) Net-Net Working Capital : A$-2.99 (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Peter Warren Automotive Holdings 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.

Peter Warren Automotive Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2023 was A$-2.99.

The industry rank for Peter Warren Automotive Holdings's Net-Net Working Capital or its related term are showing as below:

ASX:PWR's Price-to-Net-Net-Working-Capital is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.86
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Peter Warren Automotive Holdings Net-Net Working Capital Historical Data

The historical data trend for Peter Warren Automotive Holdings'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.

Peter Warren Automotive Holdings Net-Net Working Capital Chart

Peter Warren Automotive Holdings Annual Data
Trend Jun21 Jun22 Jun23
Net-Net Working Capital
-1.38 -2.27 -2.37

Peter Warren Automotive Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Net-Net Working Capital Get a 7-Day Free Trial -2.37 -2.27 -2.39 -2.37 -2.99

Competitive Comparison of Peter Warren Automotive Holdings's Net-Net Working Capital

For the Auto & Truck Dealerships subindustry, Peter Warren Automotive Holdings'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.

Peter Warren Automotive Holdings's Price-to-Net-Net-Working-Capital Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Peter Warren Automotive Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Peter Warren Automotive Holdings's Price-to-Net-Net-Working-Capital falls into.


Peter Warren Automotive Holdings Net-Net Working Capital Calculation

Peter Warren Automotive Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2023 is calculated as

Net-Net Working Capital(A: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(50.635+0.75 * 69.471+0.5 * 360.992-690.613
-0-0)/171.921
=-2.37

Peter Warren Automotive Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(23.912+0.75 * 81.135+0.5 * 449.348-817.424
-0-7.867)/172.256
=-2.99

* 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.

Peter Warren Automotive Holdings  (ASX:PWR) 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.

Peter Warren Automotive Holdings Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Peter Warren Automotive Holdings's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Peter Warren Automotive Holdings (ASX:PWR) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Peter Warren Automotive Holdings Ltd (ASX:PWR) » Definitions » Net-Net Working Capital
Comparable Companies
ASX:ASG ASX:MTO TPE:2207 PAG KMX XBRU:DIE LAD AN HKSE:00881 TSE:4732 ABG GPI LSE:INCH RUSHA CVNA ACVA ASX:APE SHSE:600297 CARG DRVN
Traded in Other Exchanges
N/A
Address
13 Hume Highway, Warwick Farm, Sydney, NSW, AUS, 2170
Website
https://www.peterwarren.com.au
Peter Warren Automotive Holdings Ltd is a dealership group operating in Australia. The company operates an integrated new and used car retailing business providing the full range of sales and support including parts, service, finance and insurance and aftermarket products to an extensive list of long-term customers, many of whom have purchased multiple vehicles over a life time. The company has two operating segments Vehicle Retailing and property segment, The company generates the majority of its revenue from the Vehicle Retailing segment, which offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.