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WeCommerce Holdings (TSXV:WE) Net-Net Working Capital : C$-1.13 (As of Dec. 2022)


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What is WeCommerce 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.

WeCommerce Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2022 was C$-1.13.

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

TSXV:WE's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 7.38
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

WeCommerce Holdings Net-Net Working Capital Historical Data

The historical data trend for WeCommerce 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.

WeCommerce Holdings Net-Net Working Capital Chart

WeCommerce Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22
Net-Net Working Capital
-0.23 1.21 -1.59 -1.13

WeCommerce Holdings Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 -1.59 -1.19 -1.19 -1.23 -1.13

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

For the Software - Application subindustry, WeCommerce 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.


WeCommerce Holdings's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, WeCommerce Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



WeCommerce Holdings Net-Net Working Capital Calculation

WeCommerce Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2022 is calculated as

Net-Net Working Capital(A: Dec. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.947+0.75 * 2.04+0.5 * 0-59.39
-0-0)/41.6148
=-1.13

WeCommerce Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2022 is calculated as

Net-Net Working Capital(Q: Dec. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(10.947+0.75 * 2.04+0.5 * 0-59.39
-0-0)/41.6148
=-1.13

* 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.


WeCommerce Holdings  (TSXV:WE) 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.


WeCommerce Holdings Net-Net Working Capital Related Terms

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WeCommerce Holdings (TSXV:WE) Business Description

Traded in Other Exchanges
N/A
Address
329 Howe Street, PMB 2066, Victoria, BC, CAN, V6C 3N2
WeCommerce Holdings Ltd is a holding company that owns a family of companies and brands in the Shopify partner ecosystem, including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash, Stamped and Foursixty. The company's primary focus is to build, grow and acquire businesses that serve the Shopify Partner ecosystem. These businesses consist largely of Software as a Service, Digital Goods and Services businesses. Generally, these businesses build Apps and Themes and run Agencies that support Shopify merchants. The company targets businesses within the Shopify ecosystem due to its confidence in the Shopify platform, the fragmented nature of the ecosystem and the attractive economics that the businesses generally exhibit. Its segments include Themes, Apps and Agency.

WeCommerce Holdings (TSXV:WE) Headlines

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