CapitalSource (FRA:CAU) Net-Net Working Capital : €-25.26 (As of Dec. 2013)

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What is CapitalSource 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.

CapitalSource's Net-Net Working Capital for the quarter that ended in Dec. 2013 was €-25.26.

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

FRA:CAU's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Credit Services industry.
Industry Median: 8.145
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

CapitalSource Net-Net Working Capital Historical Data

The historical data trend for CapitalSource'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.

CapitalSource Net-Net Working Capital Chart

CapitalSource Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Net-Net Working Capital

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-19.94

-15.48

-20.08

-24.09

-25.26

CapitalSource Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Net-Net Working Capital	Get a 7-Day Free Trial															-24.09	-26.14	-26.39	-25.56	-25.26

Competitive Comparison of CapitalSource's Net-Net Working Capital

For the Credit Services subindustry, CapitalSource'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.

CapitalSource's Price-to-Net-Net-Working-Capital Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, CapitalSource's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

CapitalSource Net-Net Working Capital Calculation

CapitalSource's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2013 is calculated as

	Net-Net Working Capital		(A: Dec. 2013 )
=	(Balance Sheet Cash And Cash Equivalents	+	Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(140.364	+	192.369	+	0.75 * 0	+	0.5 * 0	-	5306.27
-	0	-	0)	/	196.855
=	-25.26

CapitalSource's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2013 is calculated as

	Net-Net Working Capital		(Q: Dec. 2013 )
=	(Balance Sheet Cash And Cash Equivalents	+	Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(140.364	+	192.369	+	0.75 * 0	+	0.5 * 0	-	5306.27
-	0	-	0)	/	196.855
=	-25.26

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.

CapitalSource (FRA:CAU) 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.

CapitalSource Net-Net Working Capital Related Terms

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CapitalSource (FRA:CAU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » CapitalSource Inc (FRA:CAU) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.capitalsource.com

CapitalSource Inc., incorporated in the state of Delaware. It is a commercial lender that provides financial products to middle market businesses. Through its wholly owned subsidiary, CapitalSource Bank, the Company provides depository products and services in southern and central California. Its main products include: Depository Products and Services; First Mortgage Loans; Senior Secured Asset-Based Loans; Senior Secured Cash Flow Loans; Direct Real Estate Investments; Term B, Second Lien and Mezzanine Loans; Equity Investments; and Residential Mortgage Investments. The Company currently operates as three reportable segments: Commercial Banking, Healthcare Net Lease and Residential Mortgage Investment. Its Commercial Banking segment comprises commercial lending and banking business activities; Healthcare Net Lease segment comprises its direct real estate investment business activities; and Residential Mortgage Investment segment comprises its residential mortgage investment and other investment activities formally engaged in to optimize its REIT qualification. Through Commercial Banking segment activities, the Company provides a range of financial products to middle market businesses and participates in broadly syndicated debt financings for larger businesses. Through Healthcare Net Lease segment activities, it invests in income-producing healthcare facilities, mainly long-term care facilities in the United States. The Company provides lease financing to skilled nursing facilities and, to a lesser extent, assisted living facilities, and long term acute care facilities. In its Commercial Banking and Healthcare Net Lease segments, the Company has three commercial lending businesses: Healthcare and Specialty Finance, which provides first mortgage loans, asset-based revolving lines of credit, and cash flow loans to healthcare businesses and, to a lesser extent, a range of other companies; Corporate Finance, which provides senior and subordinate loans through direct origination and participation in syndicated loan transactions; and Structured Finance, which engages in commercial and residential real estate finance and also provides asset-based lending to finance companies. The Company's markets are competitive and characterized by varying competitive factors. Some of its competitors have considerable market positions. The Company's bank operations are subject to regulation by federal and state regulatory agencies. This regulation is intended mainly for the protection of depositors and the deposit insurance fund, and secondarily for the stability of the U.S. banking system.

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