ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Talon International's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was 3.36%.
As of today (2026-06-24), Talon International's WACC % is 0.00%. Talon International's ROC % is 0.00% (calculated using TTM income statement data).
Talon International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Talon International (OTCPK:TALN) 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, Talon International's WACC % is 0.00%. Talon International's ROC % is 0.00% (calculated using TTM income statement data).
Talon International 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.
Talon International ROC % Related Terms
Talon International ROC % Historical Data
* Premium members only.
The historical data trend for Talon International'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.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2017) data.
The tax rate is limited to between 0% and 100%.
* 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.
Talon International (TALN) has a ROC % of 3.36% as of Sep. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Talon International and its competitors.
Is Talon International's ROC % too high?
Talon International's current ROC % is 3.36%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Talon International's value of 3.36% is 15.5% above this industry median.
How does Talon International's ROC % compare to KBSF?
Talon International's ROC % of 3.36% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Talon International's value of 3.36% is 15.5% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,049 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. Talon International's current ROC % of 3.36% is 15.5% above 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 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 Talon International and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talon International's current ROC % is 3.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talon International stock overvalued right now?
Talon International (TALN) has a current ROC % of 3.36%. The current ROC % is 3.36% and 15.5% above the Manufacturing - Apparel & Accessories industry median of 2.91. 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 Talon International (TALN), the current ROC % is 3.36% as of Sep. 2017. 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.
Talon International Inc and its subsidiaries is an apparel company that specializes in the distribution of trim items to manufacturers of fashion apparel, specialty retailers and mass merchandisers. It acts as a full-service outsourced trim management department for manufacturers, a specified supplier of trim items to owners of specific brands, brand licensees and retailers, a manufacturer and distributor of zippers under the Talon brand name and a distributor of stretch waistbands that utilize licensed patented technology under the Tekfit/Adjustec brand name.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TALN has been successfully added to your 