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Coastal Contacts (FRA:C9R1) Net-Net Working Capital : €-0.57 (As of Jan. 2014)


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What is Coastal Contacts 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.

Coastal Contacts's Net-Net Working Capital for the quarter that ended in Jan. 2014 was €-0.57.

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

FRA:C9R1's Price-to-Net-Net-Working-Capital is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 6.695
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Coastal Contacts Net-Net Working Capital Historical Data

The historical data trend for Coastal Contacts'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.

Coastal Contacts Net-Net Working Capital Chart

Coastal Contacts Annual Data
Trend Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.07 -0.01 -0.34 -0.49 -0.34

Coastal Contacts Quarterly Data
Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14
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 -0.59 -0.38 -0.45 -0.34 -0.57

Competitive Comparison of Coastal Contacts's Net-Net Working Capital

For the Medical Instruments & Supplies subindustry, Coastal Contacts'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.


Coastal Contacts's Price-to-Net-Net-Working-Capital Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Coastal Contacts's Price-to-Net-Net-Working-Capital distribution charts can be found below:

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



Coastal Contacts Net-Net Working Capital Calculation

Coastal Contacts's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Oct. 2013 is calculated as

Net-Net Working Capital(A: Oct. 2013 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(15.718+0.75 * 4.663+0.5 * 20.508-40.617
-0-0)/32.6792
=-0.34

Coastal Contacts's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jan. 2014 is calculated as

Net-Net Working Capital(Q: Jan. 2014 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(9.079+0.75 * 0+0.5 * 20.185-37.823
-0-0)/32.6792
=-0.57

* 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.


Coastal Contacts  (FRA:C9R1) 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.


Coastal Contacts Net-Net Working Capital Related Terms

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Coastal Contacts Business Description

Traded in Other Exchanges
N/A
Address
Coastal Contacts Inc. was incorporated under the Canada Business Corporations Act on December 14, 2000. The Company is an online retailer of vision care products. It is a direct-to-consumer retailer of vision care products and services. The Company sells contact lenses, eyeglasses and related products mainly through the Company's internet websites, although customers may also place orders over the telephone. It has operations and distribution centers in North America, Europe and Australia. The Company sells contact lenses manufactured by multinational companies such as Johnson and Johnson Inc., CIBA Vision Corporation (a division of Alcon), Bausch & Lomb Inc. and Coopervision Inc. It sells eyeglasses, which are mainly assembled in the Company's own laboratories, composed of frames and lenses purchased from a variety of different suppliers. The frames it uses in its eyeglasses include both branded frames and the Company's own private label frames such as Derek Cardigan, Kam Dhillon, Ltede and Joseph Marc. The Company also sells a variety of vision related products such as sunglasses and contact lens solutions including its own Healthy Eyes brand multipurpose contact lens solution for soft contact lenses. It offers substantially all of the soft contact lenses produced by the contact lens manufacturers, including Johnson & Johnson Inc., CIBA Vision Corporation, Bausch & Lomb Inc. and Coopervision Inc. The Company conducts all of its product fulfillment operations from the Company's distribution facilities in Vancouver, British Columbia, Canada; Stockholm, Sweden; Blaine, Washington and Sydney, Australia.

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