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Begbies Traynor Group (LSE:BEG) Net-Net Working Capital : £-0.38 (As of Oct. 2023)


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What is Begbies Traynor Group 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.

Begbies Traynor Group's Net-Net Working Capital for the quarter that ended in Oct. 2023 was £-0.38.

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

LSE:BEG's Price-to-Net-Net-Working-Capital is not ranked *
in the Business Services industry.
Industry Median: 5.585
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Begbies Traynor Group Net-Net Working Capital Historical Data

The historical data trend for Begbies Traynor Group'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.

Begbies Traynor Group Net-Net Working Capital Chart

Begbies Traynor Group Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.36 -0.31 -0.29 -0.30 -0.33

Begbies Traynor Group Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
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 -0.33 -0.30 -0.34 -0.33 -0.38

Competitive Comparison of Begbies Traynor Group's Net-Net Working Capital

For the Specialty Business Services subindustry, Begbies Traynor Group'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.


Begbies Traynor Group's Price-to-Net-Net-Working-Capital Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Begbies Traynor Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Begbies Traynor Group Net-Net Working Capital Calculation

Begbies Traynor Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Apr. 2023 is calculated as

Net-Net Working Capital(A: Apr. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(8.001+0.75 * 11.652+0.5 * 0-67.541
-0-0)/154.512
=-0.33

Begbies Traynor Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Oct. 2023 is calculated as

Net-Net Working Capital(Q: Oct. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(8.061+0.75 * 11.448+0.5 * 0-75.711
-0-0)/157.365
=-0.38

* 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.


Begbies Traynor Group  (LSE:BEG) 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.


Begbies Traynor Group Net-Net Working Capital Related Terms

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Begbies Traynor Group (LSE:BEG) Business Description

Traded in Other Exchanges
Address
340 Deansgate, Manchester, GBR, M3 4LY
Begbies Traynor Group PLC is a professional services consultancy. It provides insolvency, restructuring and consultancy services to businesses, professional advisors, and financial institutions. It provides professional services, such as business rescue options, advisory options, forensic accounting and investigations, corporate and commercial finance, personal insolvency solutions and services to banking, legal, and accounting sectors. The company is managed as two operating segments: insolvency and advisory services, and property advisory and transactional services. The group generates the majority of its revenue from insolvency and advisory services. The group's principal operations and markets are in the UK.

Begbies Traynor Group (LSE:BEG) Headlines

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