The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Alarm.com Holdings's Revenue for the
three
months ended in Mar. 2026 was $265 Mil. Alarm.com Holdings's average Accounts Receivable for the
three
months ended in Mar. 2026 was $142 Mil.
Hence, Alarm.com Holdings's Receivables Turnover for the
three
months ended in Mar. 2026 was 1.87.
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
Alarm.com Holdings Receivables Turnover Related Terms
Alarm.com Holdings Receivables Turnover Historical Data
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The historical data trend for Alarm.com Holdings's Receivables 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.
ALRM vs BRZE, QNT, SPSC: Receivables Turnover Comparison
For the Software - Application subindustry, Alarm.com Holdings's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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 Receivables Turnover vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Receivables Turnover falls into.
* 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 (ALRM) has a Receivables Turnover of 1.87 as of Mar. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Alarm.com Holdings and its competitors. According to the industry distribution chart, Alarm.com Holdings ranks #822 out of 2765 companies in the Software industry, placing it in the top 29.7%.
Is Alarm.com Holdings' Receivables Turnover too high?
Alarm.com Holdings' current Receivables Turnover is 1.87. The Software industry median Receivables Turnover is 5.68. Alarm.com Holdings' value of 1.87 is 67.1% below this industry median. Based on the distribution chart, Alarm.com Holdings ranks #822 out of 2765 companies in the Software industry, which is above the industry midpoint. 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' Receivables Turnover compare to BRZE and QNT?
According to the Software industry distribution chart, Alarm.com Holdings ranks #822 out of 2765 companies for Receivables Turnover. This puts Alarm.com Holdings in the upper half of its industry. The industry median Receivables Turnover is 5.68. Alarm.com Holdings' value of 1.87 is 67.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Software company?
The median Receivables Turnover among Software companies is 5.68, based on 2,765 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Receivables Turnover of 1.87 is 67.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median Receivables Turnover is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Receivables Turnover is 1.87. 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 $65.03, compared to a current price of $49.86 — trading 23.3% below its estimated fair value. The current Receivables Turnover is 1.87 and 67.1% below the Software industry median of 5.68. 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 Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Receivables Turnover is 1.87 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 $49.86 is trading 23.3% below its estimated GF Value™ of $65.03.
GuruFocus considers Alarm.com Holdings to be Modestly Undervalued.
Key valuation signals for ALRM:
Receivables Turnover: 1.87
GF Value™: $65.03 vs. price of $49.86 (23.3% below fair value)
Industry Position: 67.1% below the Software median (#822 of 2765)
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 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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