PRXM (Proxim Wireless) Effective Interest Rate on Debt %: 20.86% (As of Mar. 2010)


What is Proxim Wireless Effective Interest Rate on Debt %?

Proxim Wireless PRXM Effective Interest Rate on Debt % is 20.86% as of Mar. 2010.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Proxim Wireless's annualized positive value of Interest Expense for the quarter that ended in Mar. 2010 was $0.75 Mil. Proxim Wireless's average total debt for the quarter that ended in Mar. 2010 was $3.59 Mil. Therefore, Proxim Wireless's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2010 was 20.86%.

Proxim Wireless  (OTCPK:PRXM) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Proxim Wireless Effective Interest Rate on Debt % Related Terms

Proxim Wireless Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Proxim Wireless's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

Proxim Wireless Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 18.85 26.72

Proxim Wireless Quarterly Data
Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Dec09 Mar10
Effective Interest Rate on Debt % 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 0.00 0.00 31.65 0.00 20.86

PRXM vs OSAT, GTXO, DGDM: Effective Interest Rate on Debt % Comparison

For the Communication Equipment subindustry, Proxim Wireless's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Hardware Industry

For the Hardware industry and Technology sector, Proxim Wireless's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Proxim Wireless's Effective Interest Rate on Debt % falls into.


Proxim Wireless Effective Interest Rate on Debt % Calculation

Proxim Wireless's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2009 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2008 )+Total Debt  (A: Dec. 2009 ))/ count )
=-1  *  -0.826/( (2.616+3.567)/ 2 )
=-1  *  -0.826/3.0915
=26.72 %

where

Total Debt  (A: Dec. 2008 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.616 + 0
=2.616

Total Debt  (A: Dec. 2009 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.512 + 2.055
=3.567

Proxim Wireless's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2010 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2009 )+Total Debt  (Q: Mar. 2010 ))/ count )
=-1  *  -0.748/( (3.567+3.605)/ 2 )
=-1  *  -0.748/3.586
=20.86 %

where

Total Debt  (Q: Dec. 2009 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.512 + 2.055
=3.567

Total Debt  (Q: Mar. 2010 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.55 + 2.055
=3.605

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2010) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 20.86% mean?
Proxim Wireless (PRXM) has a Effective Interest Rate on Debt % of 20.86% as of Mar. 2010. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Proxim Wireless and its competitors.
Is Proxim Wireless' Effective Interest Rate on Debt % too high?
Proxim Wireless' current Effective Interest Rate on Debt % is 20.86%.
How does Proxim Wireless' Effective Interest Rate on Debt % compare to OSAT and GTXO?
Proxim Wireless' Effective Interest Rate on Debt % of 20.86% can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Hardware company?
A good Effective Interest Rate on Debt % depends on the Hardware industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Proxim Wireless and its competitors. Proxim Wireless's current Effective Interest Rate on Debt % is 20.86%. 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 Effective Interest Rate on Debt % of 20.86%. The current Effective Interest Rate on Debt % is 20.86%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Effective Interest Rate on Debt % is 20.86% 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.