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Linea Directa Aseguradora (XMAD:LDA) Net-Net Working Capital : €0.10 (As of Dec. 2023)


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What is Linea Directa Aseguradora 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.

Linea Directa Aseguradora's Net-Net Working Capital for the quarter that ended in Dec. 2023 was €0.10.

The industry rank for Linea Directa Aseguradora's Net-Net Working Capital or its related term are showing as below:

XMAD:LDA's Price-to-Net-Net-Working-Capital is ranked worse than
73.33% of 45 companies
in the Insurance industry
Industry Median: 5.51 vs XMAD:LDA: 9.64

Linea Directa Aseguradora Net-Net Working Capital Historical Data

The historical data trend for Linea Directa Aseguradora'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.

Linea Directa Aseguradora Net-Net Working Capital Chart

Linea Directa Aseguradora Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
0.14 0.03 -0.05 0.10

Linea Directa Aseguradora Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Net-Net Working Capital Get a 7-Day Free Trial 0.03 -0.02 -0.05 0.01 0.10

Competitive Comparison of Linea Directa Aseguradora's Net-Net Working Capital

For the Insurance - Property & Casualty subindustry, Linea Directa Aseguradora'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.

Linea Directa Aseguradora's Price-to-Net-Net-Working-Capital Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Linea Directa Aseguradora's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Linea Directa Aseguradora's Price-to-Net-Net-Working-Capital falls into.


Linea Directa Aseguradora Net-Net Working Capital Calculation

Linea Directa Aseguradora's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(41.746+877.343+0.75 * 0+0.5 * 0-812.287
-0-0)/1087.76
=0.10

Linea Directa Aseguradora's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(41.746+877.343+0.75 * 0+0.5 * 0-812.287
-0-0)/1087.92
=0.10

* 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.

Linea Directa Aseguradora  (XMAD:LDA) 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.

Linea Directa Aseguradora Net-Net Working Capital Related Terms

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

Linea Directa Aseguradora (XMAD:LDA) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Linea Directa Aseguradora SA (XMAD:LDA) » Definitions » Net-Net Working Capital
Comparable Companies
SHSE:603689 SHSE:601872 SHSE:601975 SZSE:002492 SZSE:002267 SHSE:600617 PGR CB TSE:8766 TRV ALL HKSE:01339 HKSE:02328 TSX:IFC TSX:FFH TSE:8725 MKL WRB CINF ASX:QBE
Traded in Other Exchanges
LNDAF:USA LDAe:UK 8I2:Germany
Address
Calle de Isaac Newton 7, Tres Cantos, Madrid, ESP, 28760
Website
https://www.lineadirectaaseguradora.com
Linea Directa Aseguradora SA is engaged in insurance and reinsurance activities in the motor, home, and other non-life segments. The company has five operating segments; The motor segment includes private motor insurance and motorbike insurance, The home segment includes multi-risk home insurance products with theft damage, civil liability, fire damage, aesthetic damage, etc, The health segment includes health insurance products under the Vivaz brand, The other insurance segment includes various products with stand-alone policies that are not linked to motor, home or health insurance, such as travel insurance for holders of credit cards and wellness insurance, and The other activities segment mainly relates to auxiliary insurance businesses and commissions.

Linea Directa Aseguradora (XMAD:LDA) Headlines

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