Revolution Beauty Group (LSE:REVB) Net-Net Working Capital : £-0.20 (As of Aug. 2023)

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What is Revolution Beauty 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.

Revolution Beauty Group's Net-Net Working Capital for the quarter that ended in Aug. 2023 was £-0.20.

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

LSE:REVB's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 7.4
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Revolution Beauty Group Net-Net Working Capital Historical Data

The historical data trend for Revolution Beauty 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.

Revolution Beauty Group Net-Net Working Capital Chart

Revolution Beauty Group Annual Data

Trend

Dec17

Dec18

Dec19

Feb22

Feb23

Net-Net Working Capital

-0.16

-0.21

-0.16

-0.23

Revolution Beauty Group Semi-Annual Data
	Dec18	Dec19	Aug21	Feb22	Aug22	Feb23	Aug23
Net-Net Working Capital	Get a 7-Day Free Trial			-0.04	-0.16	-0.18	-0.23	-0.20

Competitive Comparison of Revolution Beauty Group's Net-Net Working Capital

For the Household & Personal Products subindustry, Revolution Beauty 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.

Revolution Beauty Group's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

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

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

Revolution Beauty Group Net-Net Working Capital Calculation

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

	Net-Net Working Capital		(A: Feb. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(11.044	+	0.75 * 50.715	+	0.5 * 47.606	-	144.538
-	0	-	0)	/	309.737
=	-0.23

Revolution Beauty Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Aug. 2023 is calculated as

	Net-Net Working Capital		(Q: Aug. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(8.006	+	0.75 * 40.909	+	0.5 * 42.32	-	122.469
-	0	-	0)	/	318.264
=	-0.20

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.

Revolution Beauty Group (LSE:REVB) 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.

Revolution Beauty Group Net-Net Working Capital Related Terms

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Revolution Beauty Group (LSE:REVB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Revolution Beauty Group PLC (LSE:REVB) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

8UA:Germany

Address

90 York Way, Kings Place, London, GBR, N1 9AG

Website

https://www.revolutionbeautyplc.com

Revolution Beauty Group PLC is a global mass beauty and personal care business that operates a multi-brand, multi-category strategy and sells its products both DTC via its e-commerce operations, and in both physical and digital retailers through wholesale relationships. It has warehousing facilities in the UK, USA, and Australia, and offices in the UK, USA, New Zealand, and Germany.