Alarm.com Holdings (Alarm.com Holdings) Interest Coverage : 31.01 (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

What is Alarm.com Holdings Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Alarm.com Holdings's Operating Income for the three months ended in Dec. 2023 was $25.7 Mil. Alarm.com Holdings's Interest Expense for the three months ended in Dec. 2023 was $-0.8 Mil. Alarm.com Holdings's interest coverage for the quarter that ended in Dec. 2023 was 31.01. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Alarm.com Holdings's Interest Coverage or its related term are showing as below:

ALRM' s Interest Coverage Range Over the Past 10 Years
Min: 3.86 Med: 18.22 Max: 107.14
Current: 19.49

ALRM's Interest Coverage is ranked worse than
56.5% of 1600 companies
in the Software industry
Industry Median: 29.17 vs ALRM: 19.49

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alarm.com Holdings Interest Coverage Historical Data

The historical data trend for Alarm.com Holdings's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Alarm.com Holdings Interest Coverage Chart

Alarm.com Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

16.95

21.69

3.86

16.23

19.49

Alarm.com Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															18.37	10.16	19.54	17.85	31.01

Competitive Comparison of Alarm.com Holdings's Interest Coverage

For the Software - Application subindustry, Alarm.com Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Alarm.com Holdings's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Interest Coverage falls into.

Alarm.com Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alarm.com Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Alarm.com Holdings's Interest Expense was $-3.4 Mil. Its Operating Income was $66.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $514.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	66.829	/	-3.429
	=	19.49

Alarm.com Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Alarm.com Holdings's Interest Expense was $-0.8 Mil. Its Operating Income was $25.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $514.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	25.68	/	-0.828
	=	31.01

The higher the ratio, the stronger the company's Financial Strength is.

Alarm.com Holdings (NAS:ALRM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Alarm.com Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Alarm.com Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Alarm.com Holdings (Alarm.com Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Alarm.com Holdings Inc (NAS:ALRM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

3RL:Germany 3RL:Germany

Address

8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102

Website

https://www.alarm.com

Alarm.com Holdings Inc has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected devices. SaaS & license fees from service providers, who resell these services & pay Alarm.com a monthly subscription, are the sources of revenue for the firm. A majority of revenue is generated in the United States & Canada.

Executives

Steve Valenzuela	officer: Chief Financial Officer	1800 GREEN HILLS ROAD, SCOTTS VALLEY CA 95066
Daniel Ramos	officer: Sr. VP-Corporate Development	C/O ALARM.COM, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy P Mcadam	director	250 MIDDLEFIELD RD, MENLO PARK CA 94025
Simone Wu	director	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Jeffrey A Bedell	officer: Chief Strategy & Innovation	C/O MICROSTRATEGY INC, 1850 TOWERS CRESCENT PLAZA, VIENNA VA 22182
Stephen Trundle	director, officer: President and CEO	C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Daniel Kerzner	officer: Chief Product Officer	C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy J. Whall	director	C/O ADT, LLC, 1501 YAMATO ROAD, BOCA RATON FL 33431
Donald E Clarke	director	C/O VISUAL NETWORKS INC, 2092 GAITHER ROAD, ROCKVILLE MD 20850
Stephen C. Evans	director	C/O ALARM.COM HOLDINGS, INC., 8281 GREENSBORO DRIVE, SUITE 100, TYSONS VA 22102
Hugh Panero	director
Shattuck Mayo A Iii	director	C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105
Tcv Vii Management, L.l.c.	10 percent owner, other: May be part of a13(d) group	528 RAMONA STREET, PALO ALTO CA 94301
Technology Crossover Management Vii, L.p.	10 percent owner, other: May be part of a 13(d) group	528 RAMONA STREET, PALO ALTO CA 94301
Christopher P Marshall	10 percent owner, other: May be part of a 13(g) group	250 MIDDLEFIELD RD, MENLO PARK CA 94025