HJ Heinz Company (FRA:HJH) Net-Net Working Capital : €-16.46 (As of Jan. 2013)

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What is HJ Heinz Company 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.

HJ Heinz Company's Net-Net Working Capital for the quarter that ended in Jan. 2013 was €-16.46.

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

FRA:HJH's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 7.43
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

HJ Heinz Company Net-Net Working Capital Historical Data

The historical data trend for HJ Heinz Company'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.

HJ Heinz Company Net-Net Working Capital Chart

HJ Heinz Company Annual Data

Trend

Apr03

Apr04

Apr05

Apr06

Apr07

Apr08

Apr09

Apr10

Apr11

Apr12

Net-Net Working Capital

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-14.55

-17.76

-16.57

-16.43

-16.99

HJ Heinz Company Quarterly Data
	Apr08	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13
Net-Net Working Capital	Get a 7-Day Free Trial															-18.02	-17.03	-18.36	-17.35	-16.46

Competitive Comparison of HJ Heinz Company's Net-Net Working Capital

For the Packaged Foods subindustry, HJ Heinz Company'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.

HJ Heinz Company's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, HJ Heinz Company's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

HJ Heinz Company Net-Net Working Capital Calculation

HJ Heinz Company's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Apr. 2012 is calculated as

	Net-Net Working Capital		(A: Apr. 2012 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1011.135	+	0.75 * 0	+	0.5 * 1010.307	-	7010.775
-	0.046	-	0)	/	323.321
=	-16.99

HJ Heinz Company's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jan. 2013 is calculated as

	Net-Net Working Capital		(Q: Jan. 2013 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(827.718	+	0.75 * 0	+	0.5 * 1089.162	-	6691.689
-	0	-	0)	/	323.218
=	-16.46

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.

HJ Heinz Company (FRA:HJH) 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.

HJ Heinz Company Net-Net Working Capital Related Terms

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HJ Heinz Company (FRA:HJH) Business Description

Industry

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Address

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HJ Heinz Company was incorporated in Pennsylvania on July 27, 1900. The Company manufactures and markets an extensive line of food products throughout the world. Its main products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company's products are manufactured and packaged to provide safe, wholesome foods for consumers, as well as foodservice and institutional customers. Many products are prepared from recipes developed in the Company's research laboratories and experimental kitchens. Ingredients are carefully selected, inspected and passed on to modern factory kitchens where they are processed, after which the intermediate product is filled automatically into containers of glass, metal, plastic, paper or fiberboard, which are then sealed. Products are prepared by sterilization, blending, fermentation, pasteurization, homogenization, chilling, freezing, pickling, drying, freeze drying, baking or extruding, then labeled and cased for market. Quality assurance procedures are designed for each product and process and applied for quality and compliance with applicable laws. The Company manufactures and contracts for the manufacture of its products from a wide variety of raw foods. Pre-season contracts are made with farmers for certain raw materials such as a portion of the Company's requirements of tomatoes, cucumbers, potatoes, onions and some other fruits and vegetables. Ingredients, such as dairy products, meat, sugar and other sweeteners, including high fructose corn syrup, spices, flour and fruits and vegetables, are purchased from approved suppliers. It also owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world. Its recognizable brand is Heinz. The Company has a global portfolio of brands focused in three core categories, Ketchup and Sauces, Meals and Snacks, and Infant/Nutrition. The Company is subject to numerous food safety and other laws and regulations regarding the manufacturing, marketing, and distribution of food products.

HJ Heinz Company (FRA:HJH) Headlines

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