Hipgnosis Songs Fund (LSE:SONG) Net-Net Working Capital : £-0.46 (As of Sep. 2023)

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What is Hipgnosis Songs 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.

Hipgnosis Songs Fund's Net-Net Working Capital for the quarter that ended in Sep. 2023 was £-0.46.

The industry rank for Hipgnosis Songs Fund's Net-Net Working Capital or its related term are showing as below:

LSE:SONG's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Media - Diversified industry.
Industry Median: 4.82
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Hipgnosis Songs Fund Net-Net Working Capital Historical Data

The historical data trend for Hipgnosis Songs 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.

Hipgnosis Songs Fund Net-Net Working Capital Chart

Hipgnosis Songs Fund Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Net-Net Working Capital

0.34

-0.13

-0.35

-0.38

-0.44

Hipgnosis Songs Fund Semi-Annual Data
	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Net-Net Working Capital	Get a 7-Day Free Trial				-0.35	-0.38	-0.45	-0.44	-0.46

Competitive Comparison of Hipgnosis Songs Fund's Net-Net Working Capital

For the Entertainment subindustry, Hipgnosis Songs 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.

Hipgnosis Songs Fund's Price-to-Net-Net-Working-Capital Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Hipgnosis Songs Fund's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Hipgnosis Songs Fund's Price-to-Net-Net-Working-Capital falls into.

Hipgnosis Songs Fund Net-Net Working Capital Calculation

Hipgnosis Songs Fund's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(A: Mar. 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)
=	(31.283	+	0	+	0.75 * 0	+	0.5 * 0	-	563.609
-	0	-	0)	/	1209.21
=	-0.44

Hipgnosis Songs Fund's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

	Net-Net Working Capital		(Q: Sep. 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)
=	(27.743	+	0	+	0.75 * 0	+	0.5 * 0	-	580.276
-	0	-	0)	/	1209.21
=	-0.46

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.

Hipgnosis Songs Fund (LSE:SONG) 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.

Hipgnosis Songs Fund Net-Net Working Capital Related Terms

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Hipgnosis Songs Fund (LSE:SONG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Hipgnosis Songs Fund Ltd (LSE:SONG) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

Trafalgar Court, Les Banques, P.O. Box 286, Floor 2, Saint Peter Port, GGY, GY1 4LY

Website

https://www.hipgnosissongs.com

Hipgnosis Songs Fund Ltd is an investment company. The company's investment objective is to provide shareholders with an attractive and growing level of income, together with the potential for capital growth. It offers to play exposure to songs and associated musical intellectual property rights. Hipgnosis Songs Fund serves customers globally.