GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Sanderson Farms Inc (NAS:SAFM) » Definitions » Net-Net Working Capital

Sanderson Farms (Sanderson Farms) Net-Net Working Capital : $34.65 (As of Apr. 2022)


View and export this data going back to 1987. Start your Free Trial

What is Sanderson Farms 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.

Sanderson Farms's Net-Net Working Capital for the quarter that ended in Apr. 2022 was $34.65.

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

SAFM's Price-to-Net-Net-Working-Capital is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 7.26
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Sanderson Farms Net-Net Working Capital Historical Data

The historical data trend for Sanderson Farms'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.

Sanderson Farms Net-Net Working Capital Chart

Sanderson Farms Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.32 2.77 -0.78 -5.62 12.89

Sanderson Farms Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 -2.45 4.54 12.89 22.03 34.65

Competitive Comparison of Sanderson Farms's Net-Net Working Capital

For the Packaged Foods subindustry, Sanderson Farms'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.


Sanderson Farms's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

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

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



Sanderson Farms Net-Net Working Capital Calculation

Sanderson Farms's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Oct. 2021 is calculated as

Net-Net Working Capital(A: Oct. 2021 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(439.339+0.75 * 223.865+0.5 * 350.959-494.794
-0-0)/22.3297
=12.89

Sanderson Farms's Net-Net Working Capital (NNWC) per share for the quarter that ended in Apr. 2022 is calculated as

Net-Net Working Capital(Q: Apr. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(829.124+0.75 * 260.438+0.5 * 434.458-468.372
-0-0)/22.3202
=34.65

* 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.


Sanderson Farms  (NAS:SAFM) 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.


Sanderson Farms Net-Net Working Capital Related Terms

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


Sanderson Farms (Sanderson Farms) Business Description

Traded in Other Exchanges
N/A
Address
127 Flynt Road, Laurel, MS, USA, 39443
Sanderson Farms Inc is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors. Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States. The company's product portfolio consists of tray packs and large birds, catering to grocery and food-service customers. It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.
Executives
Toni D Cooley director 253 OLD JACKSON ROAD, MADISON MS 39110
Phil K Livingston director C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
John Bierbusse director 3500 NORTH LAKE SHORE DRIVE #14A CHICAGO IL 60657
Lampkin Butts director, officer: Vice President, Sales C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Robert C Khayat director PO BOX 1848 UNIVERSITY MS 38677
Sonia Perez director 127 FLYNT ROAD, LAUREL MS 39443
Jones Gail Pittman director C/O SANDERSON FARMS INC PO BOX 988 225 N 13TH AVE LAUREL MS 39441-0988
Green Edith Kelly director 3131 DEMOCRAT ROAD BLDG B206, MEMPHIS TN 38118
John David Barksdale director 127 FLYNT ROAD, LAUREL MS 39443
Banks Fred L Jr director 111 EAST CAPITOL STREET SUITE 600 JACKSON MS 39201-2122
Dianne Mooney director 7449 ASHLAND LANE BIRMINGHAM AL 35242
Suzanne T Mestayer director 1100 POYDRAS STREET NEW ORLEANS LA 70163
D Michael Cockrell director, officer: Treasurer & CFO C/O SANDERSON FARM 225 N 13TH AVE LAUREL MS 39441-0998
Beverly W Hogan director
Baker John H Iii director C/O SANDERSON FARMS INC 225 N 13TH AVE LAUREL MS 39441

Sanderson Farms (Sanderson Farms) Headlines

From GuruFocus

Sanderson Farms Announces Retirement of Board Member Fred Banks

By Business Wire Business Wire 10-25-2021