Bowl America (Bowl America) ROC % : 4.87% (As of Mar. 2021)

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What is Bowl America ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bowl America's annualized return on capital (ROC %) for the quarter that ended in Mar. 2021 was 4.87%.

As of today (2024-04-26), Bowl America's WACC % is 0.00%. Bowl America's ROC % is 0.00% (calculated using TTM income statement data). Bowl America earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bowl America ROC % Historical Data

The historical data trend for Bowl America's ROC % 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.

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Bowl America ROC % Chart

Bowl America Annual Data

Trend

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

ROC %

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6.23

7.79

15.32

12.71

1.74

Bowl America Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
ROC %	Get a 7-Day Free Trial															16.17	-19.15	-17.67	-10.05	4.87

Bowl America ROC % Calculation

Bowl America's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

	ROC % (A: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2019 )	+	Invested Capital (A: Jun. 2020 ))	/ count )
=	0.345 * ( 1 - 0.25% )	/	( (19.265	+	20.401)	/ 2 )
=	0.3441375	/	19.833
=	1.74 %

where

	Invested Capital		(A: Jun. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	28.389	-	2.756	-	( 7.733	-	max(0, 3.065	-	9.433	+	7.733	))
=	19.265

	Invested Capital		(A: Jun. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	28.613	-	1.202	-	( 7.01	-	max(0, 1.598	-	8.786	+	7.01	))
=	20.401

Bowl America's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	1.304 * ( 1 - 24.35% )	/	( (20.202	+	20.33)	/ 2 )
=	0.986476	/	20.266
=	4.87 %

where

	Invested Capital		(Q: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	27.285	-	0.837	-	( 6.502	-	max(0, 1.712	-	7.958	+	6.502	))
=	20.202

	Invested Capital		(Q: Mar. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	28.21	-	0.925	-	( 7.63	-	max(0, 2.135	-	9.09	+	7.63	))
=	20.33

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

Bowl America (AMEX:BWL.A) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Bowl America's WACC % is 0.00%. Bowl America's ROC % is 0.00% (calculated using TTM income statement data). Bowl America earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Bowl America ROC % Related Terms

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Bowl America (Bowl America) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Bowl America Inc (AMEX:BWL.A) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6446 Edsall Road, Alexandria, VA, USA, 22312

Website

http://www.bowl-america.com

Bowl America Inc is engaged in the entertainment business. The firm operates bowling centers, with food and beverage service in each center. Its offerings include bowling parties, cosmic bowling, leagues, and open bowling. In addition, each center sells retail bowling accessories. The company's bowling centers are located in Washington D.C, Baltimore, Maryland, Richmond, Virginia, Jacksonville, and Florida. Its principal source of revenue consists of fees charged for the use of bowling lanes and other facilities.

Executives

Gloria Bragg	director	6446 EDSALL ROAD ALEXANDRIA VA 22312
Merle Fabian	director, 10 percent owner
Nancy Hull	director	C/O BOWL AMERICA INCORPORATED 6446 EDSALL ROAD ALEXANDRIA VA 22312
Arthur H. Bill	director	6844 GLENBROOK ROAD BETHESDA MD 20814
Leslie H Goldberg	director, 10 percent owner, officer: President
Stanley H Katzman	director, 10 percent owner

Bowl America (Bowl America) Headlines

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