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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Alarm.com Holdings's current ratio for the quarter that ended in Dec. 2023 was 5.46.
Alarm.com Holdings has a current ratio of 5.46. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Alarm.com Holdings's Current Ratio or its related term are showing as below:
During the past 12 years, Alarm.com Holdings's highest Current Ratio was 7.09. The lowest was 3.02. And the median was 4.60.
The historical data trend for Alarm.com Holdings's Current 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.
Alarm.com Holdings Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Current Ratio | Get a 7-Day Free Trial | 3.21 | 4.40 | 7.09 | 5.40 | 5.46 |
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 | |
Current Ratio | Get a 7-Day Free Trial | 5.40 | 5.46 | 5.41 | 5.42 | 5.46 |
For the Software - Application subindustry, Alarm.com Holdings's Current Ratio, along with its competitors' market caps and Current 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.
For the Software industry and Technology sector, Alarm.com Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Current Ratio falls into.
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Alarm.com Holdings's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Current Ratio (A: Dec. 2023 ) | = | Total Current Assets (A: Dec. 2023 ) | / | Total Current Liabilities (A: Dec. 2023 ) |
= | 956.78 | / | 175.337 | |
= | 5.46 |
Alarm.com Holdings's Current Ratio for the quarter that ended in Dec. 2023 is calculated as
Current Ratio (Q: Dec. 2023 ) | = | Total Current Assets (Q: Dec. 2023 ) | / | Total Current Liabilities (Q: Dec. 2023 ) |
= | 956.78 | / | 175.337 | |
= | 5.46 |
* 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.
Alarm.com Holdings (NAS:ALRM) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Thank you for viewing the detailed overview of Alarm.com Holdings's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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