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Alarm.com Holdings ROA %

: 2.96% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Alarm.com Holdings's annualized Net Income for the quarter that ended in Mar. 2022 was $36.3 Mil. Alarm.com Holdings's average Total Assets over the quarter that ended in Mar. 2022 was $1,228.4 Mil. Therefore, Alarm.com Holdings's annualized ROA % for the quarter that ended in Mar. 2022 was 2.96%.

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

ALRM' s ROA % Range Over the Past 10 Years
Min: 3.93   Med: 6.78   Max: 12.25
Current: 3.93

During the past 10 years, Alarm.com Holdings's highest ROA % was 12.25%. The lowest was 3.93%. And the median was 6.78%.

ALRM's ROA % is ranked better than
60.71% of 2718 companies
in the Software industry
Industry Median: 1.29 vs ALRM: 3.93

Alarm.com Holdings ROA % Historical Data

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

Alarm.com Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.24 5.30 10.72 12.08 5.32

Alarm.com Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROA % 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 Premium Member Only Premium Member Only Premium Member Only 6.43 5.19 4.63 3.03 2.96

Competitive Comparison

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

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

* The bar in red indicates where Alarm.com Holdings's ROA % falls into.



Alarm.com Holdings ROA % Calculation

Alarm.com Holdings's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=52.259/( (731.687+1232.015)/ 2 )
=52.259/981.851
=5.32 %

Alarm.com Holdings's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=36.316/( (1232.015+1224.79)/ 2 )
=36.316/1228.4025
=2.96 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


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

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2022 )
=Net Income/Total Assets
=36.316/1228.4025
=(Net Income / Revenue)*(Revenue / Total Assets)
=(36.316 / 821.748)*(821.748 / 1228.4025)
=Net Margin %*Asset Turnover
=4.42 %*0.669
=2.96 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Alarm.com Holdings ROA % Related Terms

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


Alarm.com Holdings Business Description

Alarm.com Holdings logo
Traded in Other Exchanges
Address
8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
Alarm.com Holdings Inc provides a software-as-a-service, or SaaS, platform solution for the connected home. The platform allows home and business owners to secure their properties and automate and control an array of connected devices. SaaS and license fees from service providers, who resell these services and pay Alarm.com a monthly subscription, are the largest sources of revenue for the firm. The SaaS platform also caters to the service provider by offering enterprise-grade business-management solutions to expand and manage its customer base. A large majority of the firm's revenue is generated in the United States and Canada.
Executives
Mcadam Timothy P director 250 MIDDLEFIELD RD MENLO PARK CA 94025
Whall Timothy J. director C/O ADT, LLC 1501 YAMATO ROAD BOCA RATON FL 33431
Evans Stephen C. director C/O ALARM.COM HOLDINGS, INC. 8281 GREENSBORO DRIVE, SUITE 100 TYSONS VA 22102
Tcv Vii Management, L.l.c. 10 percent owner, other: May be part of a13(d) group 528 RAMONA STREET PALO ALTO CA 94301
Wu Simone director 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Lee Michelle K. director C/O ALARM.COM HOLDINGS, INC. 8281 GREENSBORO DRIVE, SUITE 100 TYSONS VA 22102
Tcv Member Fund, L.p. 10 percent owner, other: May be part of a 13(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
Abs Capital Partners V Trust 10 percent owner 400 EAST PRATT STREET SUITE 910 BALTIMORE MD 21202
Abs Capital Partners, Inc. 10 percent owner 400 EAST PRATT STREET, SUITE 910 BALTIMORE MD 21202-3127
Valenzuela Steve officer: Chief Financial Officer 1800 GREEN HILLS ROAD SCOTTS VALLEY CA 95066
Gollinger Allan Jon officer: Principal Accounting Officer 8281 GREENSBORO DRIVE, STE 100 C/O ALARM.COM HOLDINGS, INC. TYSONS VA 22102
Nevin Darius G director C/O WCI COMMUNITIES, INC. 24301 WALDEN CENTER DRIVE BONITA SPRINGS FL 34134
Abs Partners V, L.p. 10 percent owner C/O ALARM.COM HOLDINGS, INC. 8150 LEESBURG PIKE VIENNA VA 22182
Abs Partners V Llc 10 percent owner C/O ALARM.COM HOLDINGS, INC. 8150 LEESBURG PIKE VIENNA VA 22182

Alarm.com Holdings Headlines

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