PRXM (Proxim Wireless) Inventory Turnover: 1.51 (As of Mar. 2010)

What is Proxim Wireless Inventory Turnover?

Proxim Wireless PRXM Inventory Turnover is 1.51 as of Mar. 2010.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Proxim Wireless's Cost of Goods Sold for the three months ended in Mar. 2010 was $4.26 Mil. Proxim Wireless's Average Total Inventories for the quarter that ended in Mar. 2010 was $2.82 Mil. Proxim Wireless's Inventory Turnover for the quarter that ended in Mar. 2010 was 1.51.

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-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 quarter that ended in Mar. 2010 was 0.37.

Proxim Wireless (OTCPK:PRXM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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-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 quarter that ended in Mar. 2010 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2010 )	/	Revenue (Q: Mar. 2010 )
	=	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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Proxim Wireless Inventory Turnover Related Terms

Proxim Wireless Inventory Turnover Historical Data

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The historical data trend for Proxim Wireless's Inventory Turnover can be seen below:

Proxim Wireless Inventory Turnover Chart

Proxim Wireless Annual Data

Trend

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Inventory Turnover

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3.65

4.38

4.69

5.89

4.87

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 Turnover	Get a 7-Day Free Trial															1.58	1.62	0.90	0.00	1.51

Proxim Wireless Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2009 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2009 )	/ (	(Total Inventories (A: Dec. 2008 )	+	Total Inventories (A: Dec. 2009 ))	/	count )
=	16.777	/ (	(3.947	+	2.948)	/	2 )
=	16.777	/	3.4475
=	4.87

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

	Inventory Turnover (Q: Mar. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2010 )	/ (	(Total Inventories (Q: Dec. 2009 )	+	Total Inventories (Q: Mar. 2010 ))	/	count )
=	4.262	/ (	(2.948	+	2.696)	/	2 )
=	4.262	/	2.822
=	1.51

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 1.51 mean?

Proxim Wireless (PRXM) has a Inventory Turnover of 1.51 as of Mar. 2010. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Proxim Wireless and its competitors.

Is Proxim Wireless' Inventory Turnover too high?

Proxim Wireless' current Inventory Turnover is 1.51.

How does Proxim Wireless' Inventory Turnover compare to OSAT and GTXO?

Proxim Wireless' Inventory Turnover of 1.51 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 Turnover for a Hardware company?

A good Inventory Turnover depends on the Hardware industry context. However, Inventory Turnover 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 Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Proxim Wireless and its competitors. Proxim Wireless's current Inventory Turnover is 1.51. 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 Turnover of 1.51. The current Inventory Turnover is 1.51. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Inventory Turnover is 1.51 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

Industry Technology Hardware

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

Website https://www.proxim.com

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.