10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Alarm.com Holdings's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was 8.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Alarm.com Holdings's 10-Year ROIIC % or its related term are showing as below:
STU:3RL's 10-Year ROIIC % is ranked better than 60.39% of 2358
companies
in the Software industry
Industry Median: 3.83
vs STU:3RL: 8.54
Alarm.com Holdings 10-Year ROIIC % Historical Data
The historical data trend for Alarm.com Holdings's 10-Year ROIIC % 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.
Competitive Comparison of Alarm.com Holdings's 10-Year ROIIC %
For the Software - Application subindustry, Alarm.com Holdings's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % Distribution in the Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's 10-Year ROIIC % falls into.
Alarm.com Holdings 10-Year ROIIC % Calculation
Alarm.com Holdings's 10-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 50.3309066 (Dec. 2023) - 3.400508 (Dec. 2013) )
/
( 586.405 (Dec. 2023) - 37.605 (Dec. 2013) )
=
46.9303986
/
548.8
=
8.55%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Alarm.com Holdings 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Alarm.com Holdings's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
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. The majority of revenue is generated in the United States & Canada.
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