Many thanks go to Nate Tobik at Oddball stocks for his post answering my questions about net-nets. Sketch notes below
Prefer cash and receivables to inventory. Avoid high debt. Poor management often want to lever up. Ensure trading is at least cashflow positive, otherwise the asset base can be eroded. If ncav is mostly inventory, look at the operations for potential margin expansion. Exit when the company reaches ncav - they're usually lousy businesses, and aren't worth holding beyond that.
Many thanks, Nate.