Rowe (ROWC) Sloan Ratio %: -11.94% (As of May. 2006)

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What is Rowe Sloan Ratio %?

Rowe ROWC Sloan Ratio % is -11.94% as of May. 2006.

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Rowe's Sloan Ratio for the quarter that ended in May. 2006 was -11.94%.

As of May. 2006, Rowe has a Sloan Ratio of -11.94%, indicating there is a warning stage of accrual build up.


Rowe  (OTCPK:ROWC) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of May. 2006, Rowe has a Sloan Ratio of -11.94%, indicating there is a warning stage of accrual build up.


Rowe Sloan Ratio % Related Terms


Rowe Sloan Ratio % Historical Data

* Premium members only.

The historical data trend for Rowe's Sloan Ratio % 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 Sloan Ratio % Chart

Rowe Annual Data
Trend Nov96 Nov97 Nov98 Nov99 Nov00 Nov01 Nov02 Nov03 Nov04 Nov05
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.42 -8.47 -21.65 -2.29 0.16

Rowe Quarterly Data
Aug01 Nov01 Feb02 May02 Aug02 Nov02 Feb03 May03 Aug03 Nov03 Feb04 May04 Aug04 Nov04 Feb05 May05 Aug05 Nov05 Feb06 May06
Sloan Ratio % 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 3.71 1.12 0.18 -7.42 -11.94

ROWC vs ADAD, PFWI, MJPI: Sloan Ratio % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Rowe's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rowe's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Rowe's Sloan Ratio % falls into.



Rowe Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Rowe's Sloan Ratio for the fiscal year that ended in Nov. 2005 is calculated as

Sloan Ratio=(Net Income (A: Nov. 2005 )-Cash Flow from Operations (A: Nov. 2005 )
-Cash Flow from Investing (A: Nov. 2005 ))/Total Assets (A: Nov. 2005 )
=(-5.305--11.761
-6.237)/134.216
=0.16%

Rowe's Sloan Ratio for the quarter that ended in May. 2006 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: May. 2006 )
=(-10.901-1.099
-3.731)/131.739
=-11.94%

Rowe's Net Income for the trailing twelve months (TTM) ended in May. 2006 was 0.149 (Aug. 2005 ) + -2.739 (Nov. 2005 ) + -3.366 (Feb. 2006 ) + -4.945 (May. 2006 ) = $-10.9 Mil.
Rowe's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2006 was -2.375 (Aug. 2005 ) + 2.137 (Nov. 2005 ) + 1.178 (Feb. 2006 ) + 0.159 (May. 2006 ) = $1.1 Mil.
Rowe's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2006 was 6.975 (Aug. 2005 ) + -1.344 (Nov. 2005 ) + -0.29 (Feb. 2006 ) + -1.61 (May. 2006 ) = $3.7 Mil.

* 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 Sloan Ratio % →
What does a Sloan Ratio % of -11.94% mean?
Rowe (ROWC) has a Sloan Ratio % of -11.94% as of May. 2006. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rowe and its competitors.
Is Rowe's Sloan Ratio % too high?
Rowe's current Sloan Ratio % is -11.94%.
How does Rowe's Sloan Ratio % compare to ADAD and PFWI?
Rowe's Sloan Ratio % of -11.94% can be compared against companies in the Furnishings, Fixtures & Appliances industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Furnishings, Fixtures & Appliances company?
A good Sloan Ratio % depends on the Furnishings, Fixtures & Appliances industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rowe and its competitors. Rowe's current Sloan Ratio % is -11.94%. 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 Sloan Ratio % of -11.94%. The current Sloan Ratio % is -11.94%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Rowe (ROWC), the current Sloan Ratio % is -11.94% 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.