Proxim Wireless's Days Sales Outstanding for the
three
months ended in Mar. 2010 was 39.03.
Proxim Wireless's Days Inventory for the
three
months ended in Mar. 2010 was 60.42.
Proxim Wireless's Days Payable for the
three
months ended in Mar. 2010 was 0.
Therefore, Proxim Wireless's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2010 was 99.45.
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.
Proxim Wireless Cash Conversion Cycle Related Terms
Proxim Wireless Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Proxim Wireless'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.
PRXM vs OSAT, GTXO, DGDM: Cash Conversion Cycle Comparison
For the Communication Equipment subindustry, Proxim Wireless'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.
Proxim Wireless Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Proxim Wireless's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Proxim Wireless's Cash Conversion Cycle falls into.
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.
Proxim Wireless's Cash Conversion Cycle for the fiscal year that ended in Dec. 2009 is calculated as
* 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.
Proxim Wireless (PRXM) has a Cash Conversion Cycle of 99.45 as of Mar. 2010. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Proxim Wireless and its competitors.
Is Proxim Wireless' Cash Conversion Cycle too high?
Proxim Wireless' current Cash Conversion Cycle is 99.45. The Hardware industry median Cash Conversion Cycle is 98.95. Proxim Wireless' value of 99.45 is 0.5% above this industry median.
How does Proxim Wireless' Cash Conversion Cycle compare to OSAT and GTXO?
Proxim Wireless' Cash Conversion Cycle of 99.45 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Proxim Wireless' value of 99.45 is 0.5% 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 Cash Conversion Cycle for a Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,475 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. Proxim Wireless's current Cash Conversion Cycle of 99.45 is 0.5% 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 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 Proxim Wireless and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Proxim Wireless's current Cash Conversion Cycle is 99.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Proxim Wireless stock overvalued right now?
Proxim Wireless (PRXM) has a current Cash Conversion Cycle of 99.45. The current Cash Conversion Cycle is 99.45 and 0.5% above the Hardware industry median of 98.95. 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 Proxim Wireless (PRXM), the current Cash Conversion Cycle is 99.45 as of Mar. 2010. 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.
Proxim Wireless Corp provides solutions for broadband wireless networks for enterprises, governments, and service providers. Its systems enable a variety of wireless applications, including security and surveillance, VoIP, last-mile access, enterprise LAN, and point-to-point backhaul. The company's product offerings include the Edge 1000 series of wireless broadband solutions; the Stratum series of 5 GHz and 6 GHz fixed wireless solutions for point-to-point and point-to-multipoint connectivity; ORiNOCO AP-9200R, an IP67-rated outdoor access point; ProximVision, a cloud-enabled carrier management system and WLAN controller; and Link calculator and estimator tools. Proxim serves customers through distributors, value-added resellers, system integrators, and original equipment manufacturers.
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