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JD Sports Fashion (LSE:JD.) Net-Net Working Capital : £-0.68 (As of Jul. 2023)


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What is JD Sports Fashion 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.

JD Sports Fashion's Net-Net Working Capital for the quarter that ended in Jul. 2023 was £-0.68.

The industry rank for JD Sports Fashion's Net-Net Working Capital or its related term are showing as below:

LSE:JD.'s Price-to-Net-Net-Working-Capital is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.315
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

JD Sports Fashion Net-Net Working Capital Historical Data

The historical data trend for JD Sports Fashion'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.

JD Sports Fashion Net-Net Working Capital Chart

JD Sports Fashion Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.11 -0.46 -0.52 -0.64 -0.68

JD Sports Fashion Semi-Annual Data
Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23
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 -0.52 -0.64 -0.66 -0.68 -0.68

Competitive Comparison of JD Sports Fashion's Net-Net Working Capital

For the Apparel Retail subindustry, JD Sports Fashion'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.


JD Sports Fashion's Price-to-Net-Net-Working-Capital Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, JD Sports Fashion's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where JD Sports Fashion's Price-to-Net-Net-Working-Capital falls into.



JD Sports Fashion Net-Net Working Capital Calculation

JD Sports Fashion's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jan. 2023 is calculated as

Net-Net Working Capital(A: Jan. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1582.5+0.75 * 62.4+0.5 * 1466.4-5391.3
-0-513.9)/5183
=-0.68

JD Sports Fashion's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2023 is calculated as

Net-Net Working Capital(Q: Jul. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1391.1+0.75 * 292.1+0.5 * 1625.1-5413.4
-0-544.2)/5183.14
=-0.68

* 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.


JD Sports Fashion  (LSE:JD.) 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.


JD Sports Fashion Net-Net Working Capital Related Terms

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JD Sports Fashion (LSE:JD.) Business Description

Traded in Other Exchanges
Address
Hollinsbrook Way, Pilsworth, Bury, Lancashire, GBR, BL9 8RR
JD Sports Fashion PLC is a U.K. retailer of branded sportswear and fashionwear. The company has stores in the United Kingdom, mainland Europe, and outside Europe. The offering includes international brands, such as Adidas, Nike and The North Face, and own-brand labels, such as McKenzie, Carbrini, Supply & Demand and The Duffer of St George. The store network consists of various shops: Size?, Footpatrol, Chausport, Sprinter, Scotts, Tessuti, Cloggs, Mainline, and Ultimate Outdoors, among others. Stores are specialized: Footpatrol is a sneaker provider; Size? offers footwear, apparel, and accessories; and Chausport operates throughout France selling international footwear brands, such as Nike.

JD Sports Fashion (LSE:JD.) Headlines

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