Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Proxim Wireless's Sloan Ratio for the quarter that ended in Mar. 2010 was 0.00%.
As of Mar. 2010, Proxim Wireless has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Proxim Wireless (OTCPK:PRXM) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2010, Proxim Wireless has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Proxim Wireless Sloan Ratio % Related Terms
Proxim Wireless Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Proxim Wireless's Sloan Ratio % 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.
PRXM vs OSAT, GTXO, DGDM: Sloan Ratio % Comparison
For the Communication Equipment subindustry, Proxim Wireless's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Hardware Industry
For the Hardware industry and Technology sector, Proxim Wireless's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Proxim Wireless's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Proxim Wireless's Sloan Ratio for the fiscal year that ended in Dec. 2009 is calculated as
Proxim Wireless's Net Income for the trailing twelve months (TTM) ended in Mar. 2010 was -1.679 (Dec. 2008 ) + -0.196 (Mar. 2009 ) + 0 (Dec. 2009 ) + -1.626 (Mar. 2010 ) = $-3.50 Mil.
Proxim Wireless's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2010 was -1.601 (Dec. 2008 ) + 0 (Mar. 2009 ) + 0 (Dec. 2009 ) + 0 (Mar. 2010 ) = $-1.60 Mil.
Proxim Wireless's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2010 was -0.691 (Dec. 2008 ) + 0 (Mar. 2009 ) + 0 (Dec. 2009 ) + 0 (Mar. 2010 ) = $-0.69 Mil.
* 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 (PRXM) has a Sloan Ratio % of 0.00% as of Mar. 2010. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Proxim Wireless and its competitors.
Is Proxim Wireless' Sloan Ratio % too high?
Proxim Wireless' current Sloan Ratio % is 0.00%.
How does Proxim Wireless' Sloan Ratio % compare to OSAT and GTXO?
Proxim Wireless' Sloan Ratio % of 0.00% 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 Sloan Ratio % for a Hardware company?
A good Sloan Ratio % depends on the Hardware industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Proxim Wireless and its competitors. Proxim Wireless's current Sloan Ratio % is 0.00%. 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 Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Sloan Ratio % is 0.00% 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 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRXM has been successfully added to your 