First of all, I want to say that I am not asking these questions to be difficult. I have found your site more useful than many other sites serving a similar purpose. At the same time, this site lacks sufficient training in its use. I have watched the brief video again and again. There should be a series of videos like this one explaining calmly and thoroughly how to make use of this profoundly useful material, but not very accessible to someone with little patience to try to figure it out. I have much patience and curiosity and I’m determined to understand both Benjamin Graham’s philosophy and also your program here that is proving so useful.
I am considering investing a large amount of money into Applied Materials Inc (AMAT). I want to understand how you reached your numbers below
#1. Current Assets ÷ [2 x Current Liabilities]: 114.75%
#2. Net Current Assets ÷ Long Term Debt: 122.19%
#3. [2 x Equity] ÷ Debt: 151.97%
Under the tab “Financial Condition” you provide the following:
Annual Sales: 14,608.00 Million
Current Assets: 10,206.00 Million
Total Assets: 19,024.00 Million
Current Liabilities: 4,447.00 Million
Long Term Debt: 4,713.00 Million
Total Liabilities: 10,810.00 Million
Shares Outstanding: 916.00 Million
1. For #1 above, I have successfully computed 10,206 ÷ [2 x 4,447] = 10,206 ÷8894 = 114.75%.
2. For #2 above, I cannot compute this. You provide “Current Assets” which I’m going to assume are the same as “Net Current Assets.” You also provide “Long Term Debt.” Therefore, 10,206 ÷ 4,713 = 216.55%. You have given a quotient of 122.19%. How did you compute this number?
3. For #3 above, I cannot compute this. Under “Financial Condition” you do not provide “Equity.” Is "Equity" the same as "Current Assets?" I’ve tried the number given for "Current Assets." It doesn’t come out to 151.97%. How did you compute this number?
1. If “Current Assets” are the same as “Net Current Assets” would you consider changing one or the other to have one standard and avoid confusion?
2. If “Equity” is different than “Current Assets” or “Net Current Assets,” would you consider adding “Equity” under your tab “Financial Condition” so users can compute these numbers to our satisfaction?
I appreciate your help and I hope you don't grow weary in answering my questions. I am your friend and if you make use of my questions and suggestions, you can improve upon an already excellent program that is needed by people like myself who value the wisdom of Benjamin Graham and others like him who are logical and careful investors. Thank you.