Western Asset Mortgage Defined Opportunity Fund (Western Asset Mortgage Defined Opportunity Fund) Net-Net Working Capital : $-8.98 (As of Dec. 2023)

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What is Western Asset Mortgage Defined Opportunity Fund 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.

Western Asset Mortgage Defined Opportunity Fund's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $-8.98.

The industry rank for Western Asset Mortgage Defined Opportunity Fund's Net-Net Working Capital or its related term are showing as below:

DMO's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Asset Management industry.
Industry Median: 6.225
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Western Asset Mortgage Defined Opportunity Fund Net-Net Working Capital Historical Data

The historical data trend for Western Asset Mortgage Defined Opportunity Fund'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.

Western Asset Mortgage Defined Opportunity Fund Net-Net Working Capital Chart

Western Asset Mortgage Defined Opportunity Fund Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Net-Net Working Capital

Get a 7-Day Free Trial

-9.43

-4.81

-7.52

-9.70

-8.98

Western Asset Mortgage Defined Opportunity Fund Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Net-Net Working Capital	Get a 7-Day Free Trial								-7.52	-8.22	-9.70	-8.88	-8.98

Competitive Comparison of Western Asset Mortgage Defined Opportunity Fund's Net-Net Working Capital

For the Asset Management subindustry, Western Asset Mortgage Defined Opportunity Fund'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.

Western Asset Mortgage Defined Opportunity Fund's Price-to-Net-Net-Working-Capital Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Western Asset Mortgage Defined Opportunity Fund's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Western Asset Mortgage Defined Opportunity Fund's Price-to-Net-Net-Working-Capital falls into.

Western Asset Mortgage Defined Opportunity Fund Net-Net Working Capital Calculation

Western Asset Mortgage Defined Opportunity Fund'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)
=	(1.203	+	0	+	0.75 * 0	+	0.5 * 0	-	103.431
-	0	-	0)	/	11.3835
=	-8.98

Western Asset Mortgage Defined Opportunity Fund'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)
=	(1.203	+	0	+	0.75 * 0	+	0.5 * 0	-	103.431
-	0	-	0)	/	11.3835
=	-8.98

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.

Western Asset Mortgage Defined Opportunity Fund (NYSE:DMO) 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.

Western Asset Mortgage Defined Opportunity Fund Net-Net Working Capital Related Terms

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Western Asset Mortgage Defined Opportunity Fund (Western Asset Mortgage Defined Opportunity Fund) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Western Asset Mortgage Defined Opportunity Fund Inc (NYSE:DMO) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

620 Eighth Avenue, 47th Floor, New York, NY, USA, 10018

Website

https://www.franklintempleton.com

Western Asset Mortgage Defined Opportunity Fund Inc is a non-diversified, limited-term, closed-end management investment company. The fund's primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing primarily in a diverse portfolio of mortgage-backed securities, consisting primarily of non-agency residential mortgage-backed securities and commercial mortgage-backed securities.

Executives

Oliveira Marc De	officer: Secretary/Chief Legal Officer	C/O LEGG MASON & CO. LLC, ONE FIRST STAMFORD PLACE, STAMFORD CT 06902
Hoffmann Courtney A.	other: Secretary/GC Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Andrew J. Bowden	other: COO/Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Laura F Fergerson	other: Manager/Investment Manager	3310 QUALITY DRIVE, 2ND FLOOR, RANCHO CORDOVA CA 95670
Brian Eakes	other: Manager/Investment Manager	100 INTERNATIONAL DRIVE, BALTIMORE MD 21202
George P. Hoyt	officer: Secretary and Ch Lgl Officer	C/O FRANKLIN TEMPLETON, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Matthew Nicholls	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jed A. Plafker	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jennifer M Johnson	other: Director of Sub-Adviser	C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906
Fred Steven Jensen	officer: Chief Compliance Officer	LEGG MASON, 620 EIGHTH AVENUE, 49TH FLOOR, NEW YORK NY 10018
Robert D Agdern	director	C/O LEGG MASON, 620 EIGHTH AVENUE, 49TH FLOOR, NEW YORK NY 10018
Christopher Berarducci	officer: Treas/Principal Finan Officer	LEGG MASON, 620 EIGHTH AVENUE, NEW YORK NY 10018
Daniel P Cronin	director	235 EAST 42ND ST, NEW YORK NY 10017
Nisha Kumar	director	1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103
Jennifer S Berg	officer: Treasurer	100 INTERNATIONAL DRIVE, 7TH FLOOR, BALTIMORE MD 21202