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Madison Pacific Properties (TSX:MPC) Net-Net Working Capital : C$-5.84 (As of Feb. 2024)


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What is Madison Pacific Properties 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.

Madison Pacific Properties's Net-Net Working Capital for the quarter that ended in Feb. 2024 was C$-5.84.

The industry rank for Madison Pacific Properties's Net-Net Working Capital or its related term are showing as below:

TSX:MPC's Price-to-Net-Net-Working-Capital is not ranked *
in the Real Estate industry.
Industry Median: 4.29
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Madison Pacific Properties Net-Net Working Capital Historical Data

The historical data trend for Madison Pacific Properties'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.

Madison Pacific Properties Net-Net Working Capital Chart

Madison Pacific Properties Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.94 -4.45 -5.31 -5.88 -5.80

Madison Pacific Properties Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 -5.67 -5.64 -5.80 -5.63 -5.84

Competitive Comparison of Madison Pacific Properties's Net-Net Working Capital

For the Real Estate Services subindustry, Madison Pacific Properties'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.


Madison Pacific Properties's Price-to-Net-Net-Working-Capital Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Madison Pacific Properties's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Madison Pacific Properties's Price-to-Net-Net-Working-Capital falls into.



Madison Pacific Properties Net-Net Working Capital Calculation

Madison Pacific Properties's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Aug. 2023 is calculated as

Net-Net Working Capital(A: Aug. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(45.157+0.75 * 0.872+0.5 * 0-377.778
-0-12.883)/59.4626
=-5.80

Madison Pacific Properties's Net-Net Working Capital (NNWC) per share for the quarter that ended in Feb. 2024 is calculated as

Net-Net Working Capital(Q: Feb. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(31.434+0.75 * 5.424+0.5 * 0-370.045
-0-12.629)/59.4626
=-5.84

* 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.


Madison Pacific Properties  (TSX:MPC) 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.


Madison Pacific Properties Net-Net Working Capital Related Terms

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


Madison Pacific Properties (TSX:MPC) Business Description

Traded in Other Exchanges
Address
389 West 6th Avenue, Vancouver, BC, CAN, V5Y 1L1
Madison Pacific Properties Inc is a real estate company. It owns, develops, and operates office, industrial, and commercial real estate properties located in Western Canada. It also has investments in joint ventures that construct residential properties. The company has one reportable segment that being the Rental of Office, Industrial, Commercial, and multi-family real estate properties located in Canada. The company derives its revenue from rental operations and property management.
Executives
Peter John Bonner Director

Madison Pacific Properties (TSX:MPC) Headlines

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