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Rockwood Holdings (FRA:R6H) Net-Net Working Capital : €-17.29 (As of Sep. 2014)


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What is Rockwood 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.

Rockwood Holdings's Net-Net Working Capital for the quarter that ended in Sep. 2014 was €-17.29.

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

FRA:R6H's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.295
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Rockwood Holdings Net-Net Working Capital Historical Data

The historical data trend for Rockwood 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.

Rockwood Holdings Net-Net Working Capital Chart

Rockwood Holdings Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -28.26 -26.62 -21.81 -28.10 -8.17

Rockwood Holdings Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.32 -8.17 -8.57 -16.02 -17.29

Competitive Comparison of Rockwood Holdings's Net-Net Working Capital

For the Specialty Chemicals subindustry, Rockwood 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.


Rockwood Holdings's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Rockwood Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Rockwood Holdings Net-Net Working Capital Calculation

Rockwood Holdings'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 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1111.644+0.75 * 166.513+0.5 * 166.586-1812.663
-0-111.763)/74.019
=-8.17

Rockwood Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2014 is calculated as

Net-Net Working Capital(Q: Sep. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(550.96+0.75 * 183.446+0.5 * 176.54-1890.025
-0-118.573)/71.241
=-17.29

* 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.


Rockwood Holdings  (FRA:R6H) 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.


Rockwood Holdings Net-Net Working Capital Related Terms

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Rockwood Holdings (FRA:R6H) Business Description

Traded in Other Exchanges
N/A
Address
Rockwood Holdings Inc was incorporated in Delaware in September 2000. It is a developer, manufacturer and marketer of value-added specialty chemicals and materials used for industrial and commercial purposes. The Company operates through two business segments: Lithium and Surface Treatment. The Lithium segment operates under the Rockwood Lithium brand name and develops lithium chemicals for industries and end markets. It develops and manufactures basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents, including butyllithium and lithium aluminum hydride. It operates lithium business along the following five business divisions reflecting its core end-markets: Lithium Salts; Special Salts; Butyllithium/Lithium Metal; Battery Products and Lithium Specialties. Lithium segment obtains lithium brine which it uses to produce lithium products through evaporation in the Salar de Atacama, Chile and Silver Peak, Nevada. Lithium's customers include Bayer CropScience (a division of Bayer AG), Syngenta AG, Umicore S.A., Samsung SDI Co. Ltd. and Royal DSM N.V. Surface Treatment segment operates under the Chemetall brand name and develops and manufactures metal surface treatment products and services for industries and end market. Surface Treatment's products are used for a variety of applications and serve the automotive, aerospace and general industrial markets, including steel and metal-working industries. The customers include ArcelorMittal, Daimler AG, European Aeronautic Defence and Space Company (EADS) N.V., Ford, Renault-Nissan and Volkswagen AG. The competitors in this segment includes: Dow Corning Corporation, Catalise Industria e Comercio de Metals Ltda and Nachmann S.r.I. The Company's operations are subject to regulation by the FDA with respect to certain products produced, marketed and sold by its Lithium segment, which includes pharmaceutical intermediates.

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