GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Blue Label Telecoms Ltd (JSE:BLU) » Definitions » Net-Net Working Capital

Blue Label Telecoms (JSE:BLU) Net-Net Working Capital : R-5.10 (As of Nov. 2023)


View and export this data going back to 2007. Start your Free Trial

What is Blue Label Telecoms 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.

Blue Label Telecoms's Net-Net Working Capital for the quarter that ended in Nov. 2023 was R-5.10.

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

JSE:BLU's Price-to-Net-Net-Working-Capital is not ranked *
in the Telecommunication Services industry.
Industry Median: 7.64
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Blue Label Telecoms Net-Net Working Capital Historical Data

The historical data trend for Blue Label Telecoms'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.

Blue Label Telecoms Net-Net Working Capital Chart

Blue Label Telecoms Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.59 -3.66 -5.06 -5.18 -9.62

Blue Label Telecoms Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 -2.51 -5.18 -6.04 -9.62 -5.10

Competitive Comparison of Blue Label Telecoms's Net-Net Working Capital

For the Telecom Services subindustry, Blue Label Telecoms'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.


Blue Label Telecoms's Price-to-Net-Net-Working-Capital Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Blue Label Telecoms's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Blue Label Telecoms Net-Net Working Capital Calculation

Blue Label Telecoms's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in May. 2023 is calculated as

Net-Net Working Capital(A: May. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1376.712+0.75 * 315.025+0.5 * 555.81-10278.767
-0-111.648)/883.573
=-9.62

Blue Label Telecoms's Net-Net Working Capital (NNWC) per share for the quarter that ended in Nov. 2023 is calculated as

Net-Net Working Capital(Q: Nov. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1134.126+0.75 * 3496.876+0.5 * 2828.768-9638.251
-0-102.542)/896.333
=-5.10

* 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.


Blue Label Telecoms  (JSE:BLU) 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.


Blue Label Telecoms Net-Net Working Capital Related Terms

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


Blue Label Telecoms (JSE:BLU) Business Description

Traded in Other Exchanges
N/A
Address
75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196
Blue Label Telecoms Ltd is a technology company. It derives revenue from the distribution of airtime and mobile transaction services. It operates through four segments: African Distribution, International, Solutions and Corporate. African distribution includes the distribution of physical and virtual prepaid airtime and electricity of the South African telecommunication and utilities companies. International includes the distribution of physical and virtual prepaid airtime in India and Mexico and payment solutions in India. Solutions include the provision of a mobile transactional platform and the marketing of mobile and financial products. The company generates the vast majority of its revenue in South Africa.

Blue Label Telecoms (JSE:BLU) Headlines

From GuruFocus