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Proxim Wireless (Proxim Wireless) ROE % : -759.37% (As of Mar. 2010)


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What is Proxim Wireless ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Proxim Wireless's annualized net income for the quarter that ended in Mar. 2010 was $-6.50 Mil. Proxim Wireless's average Total Stockholders Equity over the quarter that ended in Mar. 2010 was $0.86 Mil. Therefore, Proxim Wireless's annualized ROE % for the quarter that ended in Mar. 2010 was -759.37%.

The historical rank and industry rank for Proxim Wireless's ROE % or its related term are showing as below:

PRXM's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.6
* Ranked among companies with meaningful ROE % only.

Proxim Wireless ROE % Historical Data

The historical data trend for Proxim Wireless's ROE % 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.

* Premium members only.

Proxim Wireless ROE % Chart

Proxim Wireless Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.80 -55.45 -79.15 -77.25 -144.48

Proxim Wireless Quarterly Data
Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Dec09 Mar10
ROE % 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 -63.72 -70.76 -9.04 - -759.37

Competitive Comparison of Proxim Wireless's ROE %

For the Communication Equipment subindustry, Proxim Wireless's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Proxim Wireless's ROE % distribution charts can be found below:

* The bar in red indicates where Proxim Wireless's ROE % falls into.



Proxim Wireless ROE % Calculation

Proxim Wireless's annualized ROE % for the fiscal year that ended in Dec. 2009 is calculated as

ROE %=Net Income (A: Dec. 2009 )/( (Total Stockholders Equity (A: Dec. 2008 )+Total Stockholders Equity (A: Dec. 2009 ))/ count )
=-7.406/( (8.67+1.582)/ 2 )
=-7.406/5.126
=-144.48 %

Proxim Wireless's annualized ROE % for the quarter that ended in Mar. 2010 is calculated as

ROE %=Net Income (Q: Mar. 2010 )/( (Total Stockholders Equity (Q: Dec. 2009 )+Total Stockholders Equity (Q: Mar. 2010 ))/ count )
=-6.504/( (1.582+0.131)/ 2 )
=-6.504/0.8565
=-759.37 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2010) net income data. ROE % is displayed in the 30-year financial page.


Proxim Wireless  (OTCPK:PRXM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2010 )
=Net Income/Total Stockholders Equity
=-6.504/0.8565
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-6.504 / 30.868)*(30.868 / 19.074)*(19.074 / 0.8565)
=Net Margin %*Asset Turnover*Equity Multiplier
=-21.07 %*1.6183*22.2697
=ROA %*Equity Multiplier
=-34.1 %*22.2697
=-759.37 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2010 )
=Net Income/Total Stockholders Equity
=-6.504/0.8565
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-6.504 / -6.384) * (-6.384 / -6.016) * (-6.016 / 30.868) * (30.868 / 19.074) * (19.074 / 0.8565)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0188 * 1.0612 * -19.49 % * 1.6183 * 22.2697
=-759.37 %

Note: The net income data used here is four times the quarterly (Mar. 2010) net income data. The Revenue data used here is four times the quarterly (Mar. 2010) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Proxim Wireless ROE % Related Terms

Thank you for viewing the detailed overview of Proxim Wireless's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Proxim Wireless (Proxim Wireless) Business Description

Traded in Other Exchanges
N/A
Address
1561 Buckeye Drive, Milpitas, CA, USA, 95035
Proxim Wireless Corp provides high-speed wireless communications equipment and services. Its systems enable service providers, enterprises, and governmental organizations to deliver high-speed data connectivity enabling a broad range of applications.
Executives
Alan B Howe director 1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
John W Gerdelman director C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824
Miller Lloyd I Iii 10 percent owner
Robert E Fitzgerald other: Former Officer and Director 2204 VAQUERO ESTATES BLVD, WESTLAKE TX 76262
Brian J Sereda officer: CFO andTreasurer 3590 NORTH FIRST STREET, SUITE 210, SAN JOSE CA 95134
Mobius Vi Llc 10 percent owner A/O MOBIUS VENTURO CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO ROAD, PALO ALTO CA 94306
Mobius Technology Ventures Vi Lp 10 percent owner C/O MOBIUS VANTURE CAPITAL 2 PALO ALLO, STE. 500 3000 ELCAMINO REAL, PALO ALTO CA 94306
Mobius Technology Ventures Side Fund Vi L P 10 percent owner C/O MOBIUS VENTURE CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO REAL, PALO ALTO CA 94306
Mobius Technology Ventures Advisors Fund Vi L P 10 percent owner C/O MOBIUS VENTURE CAPITAL 2 PALO ALTO, STE 500 3000 EL CAMINO REAL, PALO ALTO CA 94306
Softbank U S Ventures Vi L P 10 percent owner 200 W EVELYN AVE, STE 200, MOUNTAIN VIEW CA 94043
Daniel Hesse director
Bradley A Feld 10 percent owner C/O FOUNDRY GROUP, 645 WALNUT ST., BOULDER CO 80302
Roizen Jo Ann Heidi 10 percent owner
Carol B Armitage director C/O WINDSTREAM CORPORATION 4001 RODNEY PARHAM RD; B1F3 LITTLE ROCK AR 72212