Ikanos Communications (FRA:I9J1) Net-Net Working Capital : €-0.53 (As of Jun. 2015)

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What is Ikanos Communications 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.

Ikanos Communications's Net-Net Working Capital for the quarter that ended in Jun. 2015 was €-0.53.

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

FRA:I9J1's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Hardware industry.
Industry Median: 7.06
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Ikanos Communications Net-Net Working Capital Historical Data

The historical data trend for Ikanos Communications'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.

Ikanos Communications Net-Net Working Capital Chart

Ikanos Communications Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Net-Net Working Capital

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3.71

3.92

2.15

1.91

0.17

Ikanos Communications Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Net-Net Working Capital	Get a 7-Day Free Trial															0.42	-0.15	0.17	-	-0.53

Competitive Comparison of Ikanos Communications's Net-Net Working Capital

For the Communication Equipment subindustry, Ikanos Communications'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.

Ikanos Communications's Price-to-Net-Net-Working-Capital Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ikanos Communications's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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

Ikanos Communications Net-Net Working Capital Calculation

Ikanos Communications's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

	Net-Net Working Capital		(A: Dec. 2014 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(12.725	+	0.75 * 11.232	+	0.5 * 1.593	-	19.541
-	0	-	0)	/	13.936
=	0.17

Ikanos Communications's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2015 is calculated as

	Net-Net Working Capital		(Q: Jun. 2015 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(14.285	+	0.75 * 9.592	+	0.5 * 1.774	-	31.45
-	0	-	0)	/	17.2286
=	-0.53

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.

Ikanos Communications (FRA:I9J1) 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.

Ikanos Communications Net-Net Working Capital Related Terms

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Ikanos Communications (FRA:I9J1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Ikanos Communications Inc (FRA:I9J1) » Definitions » Net-Net Working Capital

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Traded in Other Exchanges

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Address

Website

http://www.ikanos.com

Ikanos Communications Inc was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced broadband semiconductor products and software for delivering high speed broadband solutions to the digital home. The Company's broadband multi-mode and digital subscriber line processors and other semiconductor offerings power carrier infrastructure and customer premise equipment for network equipment manufacturers who, in turn, serve telecommunications service providers. The Company has developed programmable, scalable chip architectures, which form the foundation for deploying and delivering multi-play services. This communications processor architecture with wire-speed packet processing capabilities enables high-performance end user devices capable of distributing advanced services in the home. These products support telecommunications services providers' multi-play deployment plans to the digital home while keeping their capital and operating expenditures low and have been deployed by service providers in Asia, Europe, and North and South America. The Company outsources all of its semiconductor fabrication, assembly, and test functions, which allows focusing on the design, development, sales, and marketing of its products and reduces the level of its capital investment. It offers multiple product lines that are designed to address different segments of the communications processor and the high-speed broadband DSL markets. The Company currently competes or expects to compete with, among others, Alcatel-Lucent, Broadcom Corporation, Cavium, Inc., Cortina Systems, Inc., Lantiq Deutschland GmbH, Marvell Technology Group Ltd., M/A-COM Technology Solutions Holdings, Inc., PMC-Sierra, Inc., Metanoia Communication, QUALCOMM Incorporated, Realtek Semiconductor Corp., and MediaTek Inc. As of December 29, 2013, the Company had over 285 patents issued in the United States and more than 35 companion patents issued in foreign jurisdictions.

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