PRXM (Proxim Wireless) Inventory-to-Revenue: 0.37 (As of Mar. 2010)

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What is Proxim Wireless Inventory-to-Revenue?

Proxim Wireless PRXM Inventory-to-Revenue is 0.37 as of Mar. 2010.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Proxim Wireless's Average Total Inventories for the quarter that ended in Mar. 2010 was $2.82 Mil. Proxim Wireless's Revenue for the three months ended in Mar. 2010 was $7.72 Mil. Proxim Wireless's Inventory-to-Revenue for the quarter that ended in Mar. 2010 was 0.37.

Proxim Wireless's Inventory-to-Revenue for the quarter that ended in Mar. 2010 increased from Dec. 2009 (0.00) to Dec. 2009 (0.37)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Proxim Wireless's Days Inventory for the three months ended in Mar. 2010 was 60.42.

Inventory Turnover measures how fast the company turns over its inventory within a year. Proxim Wireless's Inventory Turnover for the quarter that ended in Mar. 2010 was 1.51.


Proxim Wireless  (OTCPK:PRXM) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Proxim Wireless's Days Inventory for the three months ended in Mar. 2010 is calculated as:

Days Inventory=Average Total Inventories (Q: Mar. 2010 )/Cost of Goods Sold (Q: Mar. 2010 )*Days in Period
=2.822/4.262*365 / 4
=60.42

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Proxim Wireless's Inventory Turnover for the quarter that ended in Mar. 2010 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2010 ) / Average Total Inventories (Q: Mar. 2010 )
=4.262 / 2.822
=1.51

* 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 Inventory-to-Revenue Related Terms


Proxim Wireless Inventory-to-Revenue Historical Data

* Premium members only.

The historical data trend for Proxim Wireless's Inventory-to-Revenue 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 Inventory-to-Revenue Chart

Proxim Wireless Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.15 0.13 0.12 0.10 0.12

Proxim Wireless Quarterly Data
Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Dec09 Mar10
Inventory-to-Revenue 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 0.40 0.38 0.50 0.00 0.37

PRXM vs OSAT, GTXO, DGDM: Inventory-to-Revenue Comparison

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

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

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



Proxim Wireless Inventory-to-Revenue Calculation

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

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

Inventory-to-Revenue (A: Dec. 2009 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2008 ) + Total Inventories (A: Dec. 2009 )) / count ) / Revenue (A: Dec. 2009 )
=( (3.947 + 2.948) / 2 ) / 29.681
=3.4475 / 29.681
=0.12

Proxim Wireless's Inventory-to-Revenue for the quarter that ended in Mar. 2010 is calculated as

Inventory-to-Revenue (Q: Mar. 2010 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2009 ) + Total Inventories (Q: Mar. 2010 )) / count ) / Revenue (Q: Mar. 2010 )
=( (2.948 + 2.696) / 2 ) / 7.717
=2.822 / 7.717
=0.37

* 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 Inventory-to-Revenue →
What does a Inventory-to-Revenue of 0.37 mean?
Proxim Wireless (PRXM) has a Inventory-to-Revenue of 0.37 as of Mar. 2010. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Proxim Wireless and its competitors.
Is Proxim Wireless' Inventory-to-Revenue too high?
Proxim Wireless' current Inventory-to-Revenue is 0.37.
How does Proxim Wireless' Inventory-to-Revenue compare to OSAT and GTXO?
Proxim Wireless' Inventory-to-Revenue of 0.37 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 Inventory-to-Revenue for a Hardware company?
A good Inventory-to-Revenue depends on the Hardware industry context. However, Inventory-to-Revenue 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 Inventory-to-Revenue mean?
A high Inventory-to-Revenue can signal that a stock is expensive relative to its fundamentals. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Proxim Wireless and its competitors. Proxim Wireless's current Inventory-to-Revenue is 0.37. 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 Inventory-to-Revenue of 0.37. The current Inventory-to-Revenue is 0.37. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory-to-Revenue calculated?
Inventory-to-Revenue is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Inventory-to-Revenue is 0.37 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.