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Alarm.com Holdings (Alarm.com Holdings) Asset Turnover

: 0.16 (As of Dec. 2023)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Alarm.com Holdings's Revenue for the three months ended in Dec. 2023 was $226.2 Mil. Alarm.com Holdings's Total Assets for the quarter that ended in Dec. 2023 was $1,425.5 Mil. Therefore, Alarm.com Holdings's Asset Turnover for the quarter that ended in Dec. 2023 was 0.16.

Asset Turnover is linked to ROE % through Du Pont Formula. Alarm.com Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 18.47%. It is also linked to ROA % through Du Pont Formula. Alarm.com Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was 8.78%.


Alarm.com Holdings Asset Turnover Historical Data

The historical data trend for Alarm.com Holdings's Asset 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.

* Premium members only.

Alarm.com Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.01 0.96 0.76 0.66 0.64

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
Asset Turnover 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 0.16 0.16 0.16 0.16 0.16

Competitive Comparison

For the Software - Application subindustry, Alarm.com Holdings's Asset Turnover, along with its competitors' market caps and Asset 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 Asset Turnover Distribution

For the Software industry and Technology sector, Alarm.com Holdings's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Alarm.com Holdings's Asset Turnover falls into.



Alarm.com Holdings Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Alarm.com Holdings's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=881.682/( (1329.375+1439.563)/ 2 )
=881.682/1384.469
=0.64

Alarm.com Holdings's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=226.237/( (1411.497+1439.563)/ 2 )
=226.237/1425.53
=0.16

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


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

Asset Turnover is linked to ROE % through Du Pont Formula.

Alarm.com Holdings's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=125.216/678.122
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(125.216 / 904.948)*(904.948 / 1425.53)*(1425.53/ 678.122)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.84 %*0.6348*2.1022
=ROA %*Equity Multiplier
=8.78 %*2.1022
=18.47 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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 ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Alarm.com Holdings's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=125.216/1425.53
=(Net Income / Revenue)*(Revenue / Total Assets)
=(125.216 / 904.948)*(904.948 / 1425.53)
=Net Margin %*Asset Turnover
=13.84 %*0.6348
=8.78 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Alarm.com Holdings Asset Turnover Related Terms

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Alarm.com Holdings (Alarm.com Holdings) Business Description

Traded in Other Exchanges
Address
8281 Greensboro Drive, Suite 100, Tysons, VA, USA, 22102
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.
Executives
Steve Valenzuela officer: Chief Financial Officer 1800 GREEN HILLS ROAD, SCOTTS VALLEY CA 95066
Daniel Ramos officer: Sr. VP-Corporate Development C/O ALARM.COM, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy P Mcadam director 250 MIDDLEFIELD RD, MENLO PARK CA 94025
Simone Wu director 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Jeffrey A Bedell officer: Chief Strategy & Innovation C/O MICROSTRATEGY INC, 1850 TOWERS CRESCENT PLAZA, VIENNA VA 22182
Stephen Trundle director, officer: President and CEO C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Daniel Kerzner officer: Chief Product Officer C/O ALARM.COM HOLDINGS, INC., 8150 LEESBURG PIKE, VIENNA VA 22182
Timothy J. Whall director C/O ADT, LLC, 1501 YAMATO ROAD, BOCA RATON FL 33431
Donald E Clarke director C/O VISUAL NETWORKS INC, 2092 GAITHER ROAD, ROCKVILLE MD 20850
Stephen C. Evans director C/O ALARM.COM HOLDINGS, INC., 8281 GREENSBORO DRIVE, SUITE 100, TYSONS VA 22102
Hugh Panero director
Shattuck Mayo A Iii director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105
Tcv Vii Management, L.l.c. 10 percent owner, other: May be part of a13(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
Christopher P Marshall 10 percent owner, other: May be part of a 13(g) group 250 MIDDLEFIELD RD, MENLO PARK CA 94025