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Alarm.com Holdings Interest Coverage

: 14.44 (As of Jun. 2022)
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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 Jun. 2022 was $11.3 Mil. Alarm.com Holdings's Interest Expense for the three months ended in Jun. 2022 was $-0.8 Mil. Alarm.com Holdings's interest coverage for the quarter that ended in Jun. 2022 was 14.44. 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: 24.65   Max: 107.14
Current: 5.01


ALRM's Interest Coverage is ranked worse than
82.43% of 1565 companies
in the Software industry
Industry Median: 33.87 vs ALRM: 5.01

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.

* Premium members only.

Alarm.com Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.18 4.18 16.95 21.69 3.86

Alarm.com Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 4.03 4.55 2.54 11.37 14.44

Competitive Comparison

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 Interest Coverage Distribution

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Alarm.com Holdings's Interest Expense was $-16.0 Mil. Its Operating Income was $61.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $457.9 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*61.572/-15.956
=3.86

Alarm.com Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Alarm.com Holdings's Interest Expense was $-0.8 Mil. Its Operating Income was $11.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $520.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*11.336/-0.785
=14.44

* 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.

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 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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