Rowe (ROWC) ROC %: -17.31% (As of May. 2006)

What is Rowe ROC %?

Rowe ROWC ROC % is -17.31% as of May. 2006.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Rowe's annualized return on capital (ROC %) for the quarter that ended in May. 2006 was -17.31%.

As of today (2026-06-26), Rowe's WACC % is 0.00%. Rowe's ROC % is 0.00% (calculated using TTM income statement data). Rowe earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rowe (OTCPK:ROWC) 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, Rowe's WACC % is 0.00%. Rowe's ROC % is 0.00% (calculated using TTM income statement data). Rowe 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.

Rowe ROC % Related Terms

Rowe ROC % Historical Data

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The historical data trend for Rowe'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.

Rowe ROC % Chart

Rowe Annual Data

Trend

Nov96

Nov97

Nov98

Nov99

Nov00

Nov01

Nov02

Nov03

Nov04

Nov05

ROC %

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-5.84

1.01

2.12

2.02

-8.01

Rowe Quarterly Data
	Aug01	Nov01	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06
ROC %	Get a 7-Day Free Trial															-7.35	-4.24	-8.35	-10.50	-17.31

Rowe ROC % Calculation

Rowe's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2005 is calculated as:

	ROC % (A: Nov. 2005 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2004 )	+	Invested Capital (A: Nov. 2005 ))	/ count )
=	-15.19 * ( 1 - 42.63% )	/	( (108.195	+	109.368)	/ 2 )
=	-8.714503	/	108.7815
=	-8.01 %

where

	Invested Capital		(A: Nov. 2004 )
=	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	))
=	139.121	-	25.366	-	( 5.56	-	max(0, 42.593	-	70.858	+	5.56	))
=	108.195

	Invested Capital		(A: Nov. 2005 )
=	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	))
=	134.216	-	23.84	-	( 1.008	-	max(0, 40.249	-	68.668	+	1.008	))
=	109.368

Rowe's annualized Return on Capital (ROC %) for the quarter that ended in May. 2006 is calculated as:

	ROC % (Q: May. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2006 )	+	Invested Capital (Q: May. 2006 ))	/ count )
=	-28.092 * ( 1 - 36.3% )	/	( (103.436	+	103.378)	/ 2 )
=	-17.894604	/	103.407
=	-17.31 %

where

	Invested Capital		(Q: Feb. 2006 )
=	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	))
=	132.652	-	26.439	-	( 2.777	-	max(0, 42.165	-	63.588	+	2.777	))
=	103.436

	Invested Capital		(Q: May. 2006 )
=	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	))
=	131.739	-	26.901	-	( 1.46	-	max(0, 45.851	-	59.531	+	1.46	))
=	103.378

Note: The Operating Income data used here is four times the quarterly (May. 2006) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -17.31% mean?

Rowe (ROWC) has a ROC % of -17.31% as of May. 2006. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Rowe and its competitors.

Is Rowe's ROC % too high?

Rowe's current ROC % is -17.31%.

How does Rowe's ROC % compare to ADAD and PFWI?

Rowe's ROC % of -17.31% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.58. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for a Furnishings, Fixtures & Appliances company?

The median ROC % among Furnishings, Fixtures & Appliances companies is 3.58, based on 431 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Rowe and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rowe's current ROC % is -17.31%. 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 ROC % of -17.31%. The current ROC % is -17.31%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For Rowe (ROWC), the current ROC % is -17.31% 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

Industry Consumer Cyclical Furnishings, Fixtures & Appliances

Comparable Companies ADAD PFWI MJPI LUVU STLY EFOI NVFY PTEFF FORK KVCPF FMAKF NTZ EDOLF LBY KSNIF OTSUF SNHLF LCUT BSET FLXS

Address 1650 Tysons Boulevard, Suite 710, McLean, VA, USA, 22102

Website http://www.rowecompanies.com

Rowe Companies is engaged in manufacturing upholstered furniture. Its products include sofas, sleeper sofas, loveseats, dining sets, rugs, and chairs.