Definition of Net-net:
Net-net is a value investing technique developed by Benjamin Graham in which a company is valued based solely on its net current assets. Net net focuses on current assets, taking cash and cash equivalents at full value, then reducing accounts receivable for doubtful accounts, and reducing inventories to liquidation values. Net-net value is calculated by deducting total liabilities from the adjusted current assets. .
A fine fabric with a very open weave.
Graham used this method at a time when financial information was not as readily available, and net-nets were more accepted as a company valuation model. When a viable company is identified as a net-net, the analysis focused only on the firm’s current assets and liabilities, without taking other tangible assets or long-term liabilities into account. Advances in financial data collection now allow analysts to quickly access a firm’s entire set of financial statements, ratios, and other benchmarks.
Valuation of a company based on its working capital, calculated by reducing accounts receivables for any accounts that may not pay and taking cash at full value. Method of company valuation was introduced by Benjamin Graham.
Cover with a net.
A means of catching someone; a trap.
A piece of open-meshed material made of twine, cord, or something similar, used typically for catching fish or other animals.
Catch or land (a fish or other animal) with a net.
A structure consisting of a net supported on a frame, forming the goal in games such as soccer and hockey.
(in sport) hit (a ball) into the net; score (a goal).
Synonyms of Net-net
Trap, Booby trap, Snare, Netting, Meshwork, Mesh, Webbing, Tulle, Fishnet, Openwork, Lace, Lacework, Latticework, Lattice
How to use Net-net in a sentence?
- The net-net value investing strategy uses a company’s net current asset value for valuation purposes. Net current asset value is a company’s cash, adjusted accounts receivable and inventory, less total liabilities. .
- He turned Wilsons cross into the net.
- focuses on current assets, cash and cash equivalents, accounts receivable, and inventory for valuation purposes. .
- The search was delayed, allowing the murderers to escape the net.
- According to the net-net strategy, the ability to collect cash is the true value of a business.
- Net-net stocks may not be a reliable long-term investment strategy because management teams rarely choose to fully liquidate the company at the first sign of trouble.
- Net curtains.
- Ensuring privacy on the net is an increasingly difficult job.
- The net-net investing strategy does not take into account long-term liabilities or other tangible assets, making it unreliable for long-term investments.
- Current assets, which are used in the net-net approach, are defined as assets that are cash, and assets that are converted into cash within 12 months, including accounts receivable and inventory.
- Butler netted 14 goals.
- Fishermen mending their nets.
- Damage caused when netting the fish.
Meaning of Net-net & Net-net Definition