PRXM (Proxim Wireless) Debt-to-EBITDA : -0.64 (As of Mar. 2010)


What is Proxim Wireless Debt-to-EBITDA?

Proxim Wireless PRXM Debt-to-EBITDA is -0.64 as of Mar. 2010.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Proxim Wireless's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2010 was $2.06 Mil. Proxim Wireless's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2010 was $1.55 Mil. Proxim Wireless's annualized EBITDA for the quarter that ended in Mar. 2010 was $-5.64 Mil. Proxim Wireless's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2010 was -0.64.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Proxim Wireless's Debt-to-EBITDA or its related term are showing as below:

PRXM's Debt-to-EBITDA is not ranked *
in the Hardware industry.
Industry Median: 1.72
* Ranked among companies with meaningful Debt-to-EBITDA only.

Proxim Wireless  (OTCPK:PRXM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Proxim Wireless Debt-to-EBITDA Related Terms


Proxim Wireless Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Proxim Wireless's Debt-to-EBITDA 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.

Proxim Wireless Debt-to-EBITDA Chart

Proxim Wireless Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.66 0.00 0.00 -0.30 -0.55

Proxim Wireless Quarterly Data
Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Dec09 Mar10
Debt-to-EBITDA 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 -0.35 -2.50 0.00 N/A -0.64

PRXM vs OSAT, GTXO, DGDM: Debt-to-EBITDA Comparison

For the Communication Equipment subindustry, Proxim Wireless's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Hardware Industry

For the Hardware industry and Technology sector, Proxim Wireless's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Proxim Wireless's Debt-to-EBITDA falls into.



Proxim Wireless Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Proxim Wireless's Debt-to-EBITDA for the fiscal year that ended in Dec. 2009 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.055 + 1.512) / -6.443
=-0.55

Proxim Wireless's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2010 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.055 + 1.55) / -5.636
=-0.64

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2010) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of -0.64 mean?
Proxim Wireless (PRXM) has a Debt-to-EBITDA of -0.64 as of Mar. 2010. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Proxim Wireless.
Is Proxim Wireless' Debt-to-EBITDA too high?
Proxim Wireless' current Debt-to-EBITDA is -0.64.
How does Proxim Wireless' Debt-to-EBITDA compare to OSAT and GTXO?
Proxim Wireless' Debt-to-EBITDA of -0.64 can be compared against companies in the Hardware industry. The industry median Debt-to-EBITDA is 1.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.72, based on 1,789 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Proxim Wireless. For the Hardware industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Proxim Wireless's current Debt-to-EBITDA is -0.64. 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 Debt-to-EBITDA of -0.64. The current Debt-to-EBITDA is -0.64. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Debt-to-EBITDA is -0.64 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 Business Description

Address 2114 Ringwood Avenue, San Jose, CA, USA, 95131
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.