What is Proxim Wireless Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Proxim Wireless's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Proxim Wireless's Probability of Financial Distress (%)
For the Communication Equipment subindustry, Proxim Wireless's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
Proxim Wireless's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Proxim Wireless's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Proxim Wireless's Probability of Financial Distress (%) falls into.
Proxim Wireless Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Proxim Wireless (Proxim Wireless) Business Description
Traded in Other Exchanges
N/A
Address
1561 Buckeye Drive, Milpitas, CA, USA, 95035
Proxim Wireless Corp provides high-speed wireless communications equipment and services. Its systems enable service providers, enterprises, and governmental organizations to deliver high-speed data connectivity enabling a broad range of applications.
Executives
| Alan B Howe |
director |
1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081 |
| John W Gerdelman |
director |
C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824 |
| Miller Lloyd I Iii |
10 percent owner |
|
| Robert E Fitzgerald |
other: Former Officer and Director |
2204 VAQUERO ESTATES BLVD, WESTLAKE TX 76262 |
| Brian J Sereda |
officer: CFO andTreasurer |
3590 NORTH FIRST STREET, SUITE 210, SAN JOSE CA 95134 |
| Mobius Vi Llc |
10 percent owner |
A/O MOBIUS VENTURO CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO ROAD, PALO ALTO CA 94306 |
| Mobius Technology Ventures Vi Lp |
10 percent owner |
C/O MOBIUS VANTURE CAPITAL 2 PALO ALLO, STE. 500 3000 ELCAMINO REAL, PALO ALTO CA 94306 |
| Mobius Technology Ventures Side Fund Vi L P |
10 percent owner |
C/O MOBIUS VENTURE CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO REAL, PALO ALTO CA 94306 |
| Mobius Technology Ventures Advisors Fund Vi L P |
10 percent owner |
C/O MOBIUS VENTURE CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO REAL, PALO ALTO CA 94306 |
| Softbank U S Ventures Vi L P |
10 percent owner |
200 W EVELYN AVE, STE 200, MOUNTAIN VIEW CA 94043 |
| Daniel Hesse |
director |
|
| Bradley A Feld |
10 percent owner |
C/O FOUNDRY GROUP, 645 WALNUT ST., BOULDER CO 80302 |
| Roizen Jo Ann Heidi |
10 percent owner |
|
| Carol B Armitage |
director |
C/O WINDSTREAM CORPORATION 4001 RODNEY PARHAM RD; B1F3 LITTLE ROCK AR 72212 |
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