Alarm.com Holdings (Alarm.com Holdings) ROCE % : 12.85% (As of Dec. 2023)

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What is Alarm.com Holdings ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alarm.com Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.85%.

Alarm.com Holdings ROCE % Historical Data

The historical data trend for Alarm.com Holdings's ROCE % 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.

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Alarm.com Holdings ROCE % Chart

Alarm.com Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.60

14.73

7.11

5.27

8.34

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
ROCE %	Get a 7-Day Free Trial															6.57	4.69	7.61	7.89	12.85

Alarm.com Holdings ROCE % Calculation

Alarm.com Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	101.254	/	( ( (1329.375 - 164.936)	+	(1439.563 - 175.337) )	/ 2 )
	=	101.254	/	( (1164.439	+	1264.226)	/ 2 )
	=	101.254	/	1214.3325
	=	8.34 %

Alarm.com Holdings's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	160.908	/	( ( (1411.497 - 171.917)	+	(1439.563 - 175.337) )	/ 2 )
	=	160.908	/	( ( 1239.58	+	1264.226 )	/ 2 )
	=	160.908	/	1251.903
	=	12.85 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Alarm.com Holdings (NAS:ALRM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alarm.com Holdings ROCE % Related Terms

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

Industry

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

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