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Dis-Chem Pharmacies (JSE:DCP) Net-Net Working Capital : R-7.12 (As of Aug. 2023)


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What is Dis-Chem Pharmacies 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.

Dis-Chem Pharmacies's Net-Net Working Capital for the quarter that ended in Aug. 2023 was R-7.12.

The industry rank for Dis-Chem Pharmacies's Net-Net Working Capital or its related term are showing as below:

JSE:DCP's Price-to-Net-Net-Working-Capital is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 7.25
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Dis-Chem Pharmacies Net-Net Working Capital Historical Data

The historical data trend for Dis-Chem Pharmacies'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.

Dis-Chem Pharmacies Net-Net Working Capital Chart

Dis-Chem Pharmacies Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.41 -6.01 -7.40 -7.57 -8.43

Dis-Chem Pharmacies Semi-Annual Data
Feb14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 -6.00 -7.57 -6.44 -8.43 -7.12

Competitive Comparison of Dis-Chem Pharmacies's Net-Net Working Capital

For the Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.


Dis-Chem Pharmacies's Price-to-Net-Net-Working-Capital Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Dis-Chem Pharmacies's Price-to-Net-Net-Working-Capital falls into.



Dis-Chem Pharmacies Net-Net Working Capital Calculation

Dis-Chem Pharmacies's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Feb. 2023 is calculated as

Net-Net Working Capital(A: Feb. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(287.385+0.75 * 1209.51+0.5 * 6356.781-11583.328
-0-32.085)/859.269
=-8.43

Dis-Chem Pharmacies's Net-Net Working Capital (NNWC) per share for the quarter that ended in Aug. 2023 is calculated as

Net-Net Working Capital(Q: Aug. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(788.89+0.75 * 2688.698+0.5 * 6927.032-12373.933
-0-14.703)/859.269
=-7.12

* 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.


Dis-Chem Pharmacies  (JSE:DCP) 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.


Dis-Chem Pharmacies Net-Net Working Capital Related Terms

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Dis-Chem Pharmacies (JSE:DCP) Business Description

Traded in Other Exchanges
N/A
Address
23 Stag Road, Glen Austin, Midrand, Johannesburg, GT, ZAF, 1685
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceutical and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries its business operations principally in South Africa.