ALRM (Alarm.com Holdings) Inventory Turnover: 0.95 (As of Mar. 2026)


ALRM Alarm.com Holdings Inc ALRM
87 GF Score
Price $46.30
GF Value $64.89
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Alarm.com Holdings Inventory Turnover?

Alarm.com Holdings ALRM -0.02% 87 Inventory Turnover is 0.95 as of Mar. 2026. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $64.89 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Alarm.com Holdings's Cost of Goods Sold for the three months ended in Mar. 2026 was $91 Mil. Alarm.com Holdings's Average Total Inventories for the quarter that ended in Mar. 2026 was $95 Mil. Alarm.com Holdings's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.95.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alarm.com Holdings's Days Inventory for the three months ended in Mar. 2026 was 95.55.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Alarm.com Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.36.

Alarm.com Holdings  (NAS:ALRM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Alarm.com Holdings's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=94.7805/90.511*365 / 4
=95.55

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Alarm.com Holdings's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=94.7805 / 265.193
=0.36

* 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

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Alarm.com Holdings Inventory Turnover Related Terms

Alarm.com Holdings Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Alarm.com Holdings's Inventory Turnover 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 Inventory Turnover Chart

Alarm.com Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.12 3.59 3.07 3.55 3.76

Alarm.com Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Inventory Turnover Get a 7-Day Free Trial 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 0.88 0.97 0.96 0.95 0.95
ALRM
87GF Score
Alarm.com Holdings Inc ALRM
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Alarm.com Holdings Inventory Turnover Calculation

Alarm.com Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Inventory Turnover (A: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2025 ) / ((Total Inventories (A: Dec. 2024 ) + Total Inventories (A: Dec. 2025 )) / count )
=342.295 / ((87.435 + 94.429) / 2 )
=342.295 / 90.932
=3.76

Alarm.com Holdings's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=90.511 / ((94.429 + 95.132) / 2 )
=90.511 / 94.7805
=0.95

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.95 mean?
Alarm.com Holdings (ALRM) has a Inventory Turnover of 0.95 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Alarm.com Holdings and its competitors.
Is Alarm.com Holdings' Inventory Turnover too high?
Alarm.com Holdings' current Inventory Turnover is 0.95. Overall, Alarm.com Holdings has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Inventory Turnover compare to BRZE and QNT?
Alarm.com Holdings' Inventory Turnover of 0.95 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Software company?
A good Inventory Turnover depends on the Software industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Alarm.com Holdings and its competitors. Alarm.com Holdings's current Inventory Turnover is 0.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarm.com Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alarm.com Holdings (ALRM) is currently considered Modestly Undervalued. The stock's GF Value™ is $64.89, compared to a current price of $46.30 — trading 28.6% below its estimated fair value. The current Inventory Turnover is 0.95. Alarm.com Holdings' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Inventory Turnover is 0.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Alarm.com Holdings (ALRM) Overvalued in 2026?

Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued. The current stock price of $46.30 is trading 28.6% below its estimated GF Value™ of $64.89. GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.

Key valuation signals for ALRM:

  • Inventory Turnover: 0.95
  • GF Value™: $64.89 vs. price of $46.30 (28.6% below fair value)
  • GF Score™: 87/100 with 2 warning signs

No single metric tells the full story. See the ALRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alarm.com Holdings Business Description

Other Exchanges 0HC2:UK3RL:Germany
Address 8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
Alarm.com Holdings Inc has a cloud-based platform that offers an expansive suite of IoT solutions addressing world-wide opportunities in the residential, multi-family, small business and enterprise commercial markets. It 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 device.
87GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$46.30
Price
$64.89
GF Value