Alarm.com Holdings (FRA:3RL) Debt-to-EBITDA : 2.56 (As of Dec. 2023)

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What is Alarm.com Holdings Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Alarm.com Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €11.0 Mil. Alarm.com Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €471.3 Mil. Alarm.com Holdings's annualized EBITDA for the quarter that ended in Dec. 2023 was €188.4 Mil. Alarm.com Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.56.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Alarm.com Holdings's Debt-to-EBITDA or its related term are showing as below:

FRA:3RL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.27 Med: 1.32 Max: 5.17
Current: 3.62

During the past 12 years, the highest Debt-to-EBITDA Ratio of Alarm.com Holdings was 5.17. The lowest was 0.27. And the median was 1.32.

FRA:3RL's Debt-to-EBITDA is ranked worse than
78.17% of 1599 companies
in the Software industry
Industry Median: 1.04 vs FRA:3RL: 3.62

Alarm.com Holdings Debt-to-EBITDA Historical Data

The historical data trend for Alarm.com Holdings's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

Alarm.com Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.17

1.31

4.56

5.17

3.62

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
Debt-to-EBITDA	Get a 7-Day Free Trial															4.44	5.41	3.90	3.73	2.56

Competitive Comparison of Alarm.com Holdings's Debt-to-EBITDA

For the Software - Application subindustry, Alarm.com Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Alarm.com Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Debt-to-EBITDA falls into.

Alarm.com Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Alarm.com Holdings's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(11.043	+	471.322)	/	133.309
	=	3.62

Alarm.com Holdings's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(11.043	+	471.322)	/	188.396
	=	2.56

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Alarm.com Holdings (FRA:3RL) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Alarm.com Holdings Debt-to-EBITDA Related Terms

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

Alarm.com Holdings (FRA:3RL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Alarm.com Holdings Inc (FRA:3RL) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ALRM:USA 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.

Alarm.com Holdings (FRA:3RL) Headlines

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