Rowe (ROWC) Cash Conversion Cycle: 43.78 (As of May. 2006)


What is Rowe Cash Conversion Cycle?

Rowe ROWC Cash Conversion Cycle is 43.78 as of May. 2006.

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Rowe's Days Sales Outstanding for the three months ended in May. 2006 was 18.35.
Rowe's Days Inventory for the three months ended in May. 2006 was 79.49.
Rowe's Days Payable for the three months ended in May. 2006 was 54.06.
Therefore, Rowe's Cash Conversion Cycle (CCC) for the three months ended in May. 2006 was 43.78.

Rowe  (OTCPK:ROWC) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

Rowe Cash Conversion Cycle Related Terms

Rowe Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Rowe's Cash Conversion Cycle 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.

Rowe Cash Conversion Cycle Chart

Rowe Annual Data
Trend Nov96 Nov97 Nov98 Nov99 Nov00 Nov01 Nov02 Nov03 Nov04 Nov05
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 81.29 86.62 75.23 53.77 47.37

Rowe Quarterly Data
Aug01 Nov01 Feb02 May02 Aug02 Nov02 Feb03 May03 Aug03 Nov03 Feb04 May04 Aug04 Nov04 Feb05 May05 Aug05 Nov05 Feb06 May06
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.64 58.74 57.15 53.19 43.78

ROWC vs ADAD, PFWI, MJPI: Cash Conversion Cycle Comparison

For the Furnishings, Fixtures & Appliances subindustry, Rowe's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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.

Rowe Cash Conversion Cycle vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rowe's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rowe's Cash Conversion Cycle falls into.


Rowe Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Rowe's Cash Conversion Cycle for the fiscal year that ended in Nov. 2005 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=19.61+71.47-43.71
=47.37

Rowe's Cash Conversion Cycle for the quarter that ended in May. 2006 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=18.35+79.49-54.06
=43.78

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 43.78 mean?
Rowe (ROWC) has a Cash Conversion Cycle of 43.78 as of May. 2006. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Rowe and its competitors.
Is Rowe's Cash Conversion Cycle too high?
Rowe's current Cash Conversion Cycle is 43.78. The Furnishings, Fixtures & Appliances industry median Cash Conversion Cycle is 84.50. Rowe's value of 43.78 is 48.2% below this industry median.
How does Rowe's Cash Conversion Cycle compare to ADAD and PFWI?
Rowe's Cash Conversion Cycle of 43.78 can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median Cash Conversion Cycle is 84.50. Rowe's value of 43.78 is 48.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Furnishings, Fixtures & Appliances company?
The median Cash Conversion Cycle among Furnishings, Fixtures & Appliances companies is 84.50, based on 430 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rowe's current Cash Conversion Cycle of 43.78 is 48.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Rowe and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Cash Conversion Cycle is 84.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rowe's current Cash Conversion Cycle is 43.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rowe stock overvalued right now?
Rowe (ROWC) has a current Cash Conversion Cycle of 43.78. The current Cash Conversion Cycle is 43.78 and 48.2% below the Furnishings, Fixtures & Appliances industry median of 84.50. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Rowe (ROWC), the current Cash Conversion Cycle is 43.78 as of May. 2006. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rowe Business Description

Address 1650 Tysons Boulevard, Suite 710, McLean, VA, USA, 22102
Rowe Companies is engaged in manufacturing upholstered furniture. Its products include sofas, sleeper sofas, loveseats, dining sets, rugs, and chairs.