Alarm Com Hldgs Inc Financials
Alarm Com Hldgs Inc (ALRM) reported $1.0B in revenue for fiscal year 2025, up 7.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue is scaling faster than overhead, lifting profit margins, while FY2025 shows a more actively used balance sheet.
From FY2023 to FY2025, gross margin rose from63.1% to66.2% , and the simultaneous lift in operating margin despite higher R&D spend says scale is improving the model rather than investment cuts flattering earnings. That is why FY2025 stands out: free cash flow dropped to$137M from$196M even though net income stayed roughly steady, so the latest profit translated into cash less cleanly.
The balance sheet is still cash-rich at
A surge in investing outflows to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Alarm Com Hldgs Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Alarm Com Hldgs Inc has an operating margin of 13.2%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 72/100, reflecting efficient cost management and pricing power. This is up from 11.6% the prior year.
Alarm Com Hldgs Inc's revenue grew 7.6% year-over-year to $1.0B, a solid pace of expansion. This earns a growth score of 57/100.
Alarm Com Hldgs Inc has a moderate D/E ratio of 1.47. This balance of debt and equity financing earns a leverage score of 37/100.
Alarm Com Hldgs Inc's current ratio of 1.92 indicates adequate short-term liquidity, earning a score of 55/100. The company can meet its near-term obligations, though with limited headroom.
Alarm Com Hldgs Inc converts 13.6% of revenue into free cash flow ($137.0M). This strong cash generation earns a score of 81/100.
Alarm Com Hldgs Inc's ROE of 15.5% shows moderate profitability relative to equity, earning a score of 63/100. This is down from 16.9% the prior year.
Alarm Com Hldgs Inc scores 2.72, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Alarm Com Hldgs Inc passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Alarm Com Hldgs Inc generates $1.16 in operating cash flow ($153.3M OCF vs $131.6M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Alarm Com Hldgs Inc earns $7.73 in operating income for every $1 of interest expense ($133.6M vs $17.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Alarm Com Hldgs Inc generated $1.0B in revenue in fiscal year 2025. This represents an increase of 7.6% from the prior year.
Alarm Com Hldgs Inc's EBITDA was $164.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 19.4% from the prior year.
Alarm Com Hldgs Inc reported $131.6M in net income in fiscal year 2025. This represents an increase of 7.4% from the prior year.
Alarm Com Hldgs Inc earned $2.46 per diluted share (EPS) in fiscal year 2025. This represents an increase of 7.4% from the prior year.
Cash & Balance Sheet
Alarm Com Hldgs Inc generated $137.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 30.2% from the prior year.
Alarm Com Hldgs Inc held $960.6M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Alarm Com Hldgs Inc's gross margin was 66.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.8 percentage points from the prior year.
Alarm Com Hldgs Inc's operating margin was 13.2% in fiscal year 2025, reflecting core business profitability. This is up 1.7 percentage points from the prior year.
Alarm Com Hldgs Inc's net profit margin was 13.0% in fiscal year 2025, showing the share of revenue converted to profit. That is unchanged from the prior year.
Alarm Com Hldgs Inc's ROE was 15.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.3 percentage points from the prior year.
Capital Allocation
Alarm Com Hldgs Inc invested $270.2M in research and development in fiscal year 2025. This represents an increase of 5.6% from the prior year.
Alarm Com Hldgs Inc spent $41.6M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 44.6% from the prior year.
Alarm Com Hldgs Inc invested $16.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 60.7% from the prior year.
ALRM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.1B | $1.0B+7.6% | $939.8M+6.6% | $881.7M+4.6% | $842.6M+12.5% | $749.0M+21.2% | $618.0M+23.0% | $502.4M+19.5% | $420.5M+24.1% | $338.9M+29.8% | $261.1M+25.0% | $208.9M+24.8% | $167.3M+28.5% | $130.2M |
| Cost of Revenue | $362.8M | $342.3M+5.0% | $326.1M+0.3% | $325.2M-5.1% | $342.6M+12.0% | $305.9M+34.5% | $227.4M+23.9% | $183.6M+26.0% | $145.7M+25.4% | $116.2M+16.9% | $99.4M+28.4% | $77.4M+15.2% | $67.2M+22.2% | $55.0M |
| Gross Profit | $698.2M | $668.9M+9.0% | $613.7M+10.3% | $556.5M+11.3% | $500.0M+12.8% | $443.1M+13.4% | $390.6M+22.5% | $318.8M+16.0% | $274.8M+23.4% | $222.7M+37.7% | $161.7M+23.0% | $131.5M+31.3% | $100.1M+33.0% | $75.3M |
| R&D Expenses | $275.9M | $270.2M+5.6% | $255.9M+4.4% | $245.1M+12.1% | $218.6M+23.0% | $177.7M+16.8% | $152.1M+32.9% | $114.4M+28.3% | $89.2M+22.6% | $72.8M+64.3% | $44.3M+10.7% | $40.0M+72.5% | $23.2M+77.2% | $13.1M |
| SG&A Expenses | $120.4M | $110.4M+1.4% | $108.9M-3.6% | $112.9M+5.9% | $106.7M+22.1% | $87.4M+11.1% | $78.6M+12.4% | $70.0M-26.9% | $95.8M+72.8% | $55.4M-4.4% | $57.9M+63.3% | $35.5M+35.8% | $26.1M-12.7% | $29.9M |
| Operating Income | $136.1M | $133.6M+23.1% | $108.5M+62.4% | $66.8M+30.9% | $51.0M-17.1% | $61.6M+9.4% | $56.3M+11.7% | $50.4M+313.2% | $12.2M-63.4% | $33.4M+137.4% | $14.1M-21.9% | $18.0M-14.3% | $21.0M+182.9% | $7.4M |
| Interest Expense | $15.9M | $17.3M+51.4% | $11.4M+233.2% | $3.4M+9.1% | $3.1M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $38.4M | $37.6M+95.0% | $19.3M+10.3% | $17.5M+1717.6% | $962K+118.8% | -$5.1M-245.9% | $3.5M-37.1% | $5.6M+156.7% | -$9.8M-428.6% | $3.0M-29.3% | $4.2M-25.8% | $5.7M-16.4% | $6.8M+153.6% | $2.7M |
| Net Income | $117.3M | $131.6M+7.4% | $122.5M+52.5% | $80.3M+44.4% | $55.6M+8.7% | $51.2M-33.2% | $76.7M+43.2% | $53.5M+148.7% | $21.5M-26.4% | $29.3M+188.1% | $10.2M-13.7% | $11.8M-12.8% | $13.5M+198.5% | $4.5M |
| EPS (Diluted) | — | $2.46+7.4% | $2.29+49.7% | $1.53+43.0% | $1.07+5.9% | $1.01-34.0% | $1.53+44.3% | $1.06+146.5% | $0.43-27.1% | $0.59+181.0% | $0.21+170.0% | -$0.30 | $0.14+250.0% | $0.04 |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ALRM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.1B+4.8% | $2.0B+41.6% | $1.4B+8.3% | $1.3B+7.9% | $1.2B+68.4% | $731.7M+31.2% | $557.8M+26.5% | $441.0M+18.7% | $371.6M+42.3% | $261.2M+15.5% | $226.1M+87.0% | $120.9M | N/A |
| Current Assets | $1.3B-14.1% | $1.5B+54.9% | $956.8M+7.4% | $891.1M-2.9% | $917.6M+130.9% | $397.4M+63.1% | $243.7M+6.8% | $228.1M+39.1% | $163.9M-13.8% | $190.2M+18.1% | $161.1M+134.8% | $68.6M | N/A |
| Cash & Equivalents | $960.6M-21.3% | $1.2B+75.1% | $697.0M+12.0% | $622.2M-12.4% | $710.6M+180.4% | $253.5M+111.9% | $119.6M-18.1% | $146.1M+51.6% | $96.3M-31.5% | $140.6M+9.6% | $128.4M+201.5% | $42.6M+26.8% | $33.6M |
| Inventory | $94.4M+8.0% | $87.4M-9.1% | $96.1M-16.8% | $115.6M+53.5% | $75.3M+70.0% | $44.3M+29.6% | $34.2M+48.6% | $23.0M+62.2% | $14.2M+34.5% | $10.5M+62.9% | $6.5M-5.5% | $6.9M | N/A |
| Accounts Receivable | $141.9M+12.5% | $126.1M-3.5% | $130.6M+5.1% | $124.3M+17.8% | $105.5M+26.7% | $83.3M+9.1% | $76.4M+54.3% | $49.5M+21.8% | $40.6M+36.3% | $29.8M+39.6% | $21.3M+23.7% | $17.3M | N/A |
| Goodwill | $225.0M+45.9% | $154.2M-0.2% | $154.5M+4.3% | $148.2M+31.3% | $112.9M+0.1% | $112.8M+7.5% | $105.0M+65.1% | $63.6M0.0% | $63.6M+157.2% | $24.7M0.0% | $24.7M+15.7% | $21.4M+15.7% | $18.5M |
| Total Liabilities | $1.2B-1.7% | $1.3B+77.3% | $714.7M+1.2% | $706.5M+16.6% | $606.0M+139.3% | $253.2M+32.6% | $190.9M+16.9% | $163.4M+17.7% | $138.8M+98.3% | $70.0M+25.1% | $56.0M-76.9% | $242.8M | N/A |
| Current Liabilities | $663.1M+251.2% | $188.8M+7.7% | $175.3M+6.3% | $164.9M+27.5% | $129.3M+43.3% | $90.2M+19.1% | $75.8M+0.7% | $75.3M+69.1% | $44.5M+12.1% | $39.7M+36.5% | $29.1M+27.8% | $22.7M | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | $110.0M+74.6% | $63.0M-6.0% | $67.0M-5.6% | $71.0M+959.7% | $6.7M0.0% | $6.7M0.0% | $6.7M | N/A |
| Total Equity | $848.2M+16.7% | $726.5M+5.5% | $688.5M+15.0% | $598.9M-2.3% | $613.2M+31.1% | $467.8M+31.5% | $355.7M+28.1% | $277.6M+19.2% | $232.8M+21.7% | $191.2M+12.4% | $170.1M+239.6% | -$121.8M+13.4% | -$140.7M |
| Retained Earnings | $522.9M+34.0% | $390.3M+46.6% | $266.2M+43.8% | $185.1M+55.8% | $118.8M+78.5% | $66.6M+736.3% | -$10.5M+83.7% | -$64.0M+27.8% | -$88.7M+24.8% | -$117.9M+7.9% | -$128.1M+0.7% | -$129.0M | N/A |
ALRM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $199.1M | $153.3M-25.7% | $206.4M+51.8% | $136.0M+139.0% | $56.9M-44.8% | $103.2M+1.1% | $102.1M+116.7% | $47.1M-22.4% | $60.7M+6.2% | $57.2M+153.0% | $22.6M-19.3% | $28.0M+79.2% | $15.6M+46.8% | $10.7M |
| Capital Expenditures | $11.4M | $16.3M+60.7% | $10.1M+34.8% | $7.5M-73.8% | $28.6M+158.9% | $11.1M-31.5% | $16.1M-16.5% | $19.3M+75.4% | $11.0M+5.3% | $10.5M+15.6% | $9.1M-12.5% | $10.3M+50.1% | $6.9M+202.9% | $2.3M |
| Free Cash Flow | $187.7M | $137.0M-30.2% | $196.3M+52.8% | $128.4M+354.5% | $28.3M-69.3% | $92.1M+7.2% | $85.9M+209.3% | $27.8M-44.1% | $49.7M+6.4% | $46.7M+244.9% | $13.5M-23.4% | $17.7M+102.1% | $8.7M+4.3% | $8.4M |
| Investing Cash Flow | -$146.2M | -$358.5M-1352.5% | -$24.7M+4.9% | -$26.0M+62.0% | -$68.3M-235.5% | -$20.4M-0.4% | -$20.3M+72.4% | -$73.4M-448.8% | -$13.4M+92.1% | -$168.8M-1377.3% | -$11.4M+35.2% | -$17.6M-180.4% | -$6.3M+65.9% | -$18.4M |
| Financing Cash Flow | -$600.4M | -$55.0M-115.9% | $346.4M+1187.2% | -$31.9M+58.3% | -$76.3M-120.4% | $374.4M+619.6% | $52.0M+40118.5% | -$130K-105.4% | $2.4M-96.4% | $67.3M+6007.4% | $1.1M-98.5% | $75.4M+21161.2% | -$358K+36.1% | -$560K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $0 | $0-100.0% | $1.0M | $0 | $0 |
| Share Buybacks | $76.4M | $41.6M-44.6% | $75.0M+174.7% | $27.3M-65.4% | $78.8M | $0-100.0% | $5.1M | $0-100.0% | $1K-88.9% | $9K-18.2% | $11K+1000.0% | $1K-85.7% | $7K+40.0% | $5K |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ALRM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 66.1%+0.8pp | 65.3%+2.2pp | 63.1%+3.8pp | 59.3%+0.2pp | 59.2%-4.0pp | 63.2%-0.2pp | 63.4%-1.9pp | 65.3%-0.4pp | 65.7%+3.8pp | 61.9%-1.0pp | 63.0%+3.1pp | 59.9%+2.1pp | 57.8% |
| Operating Margin | 13.2%+1.7pp | 11.6%+4.0pp | 7.6%+1.5pp | 6.1%-2.2pp | 8.2%-0.9pp | 9.1%-0.9pp | 10.0%+7.1pp | 2.9%-7.0pp | 9.8%+4.5pp | 5.4%-3.2pp | 8.6%-3.9pp | 12.6%+6.9pp | 5.7% |
| Net Margin | 13.0%0.0pp | 13.0%+3.9pp | 9.1%+2.5pp | 6.6%-0.2pp | 6.8%-5.6pp | 12.4%+1.7pp | 10.7%+5.5pp | 5.1%-3.5pp | 8.6%+4.7pp | 3.9%-1.7pp | 5.6%-2.4pp | 8.1%+4.6pp | 3.5% |
| Return on Equity | 15.5%-1.3pp | 16.9%+5.2pp | 11.7%+2.4pp | 9.3%+0.9pp | 8.3%-8.0pp | 16.4%+1.3pp | 15.0%+7.3pp | 7.8%-4.8pp | 12.6%+7.2pp | 5.3%-1.6pp | 6.9% | N/A | N/A |
| Return on Assets | 6.2%+0.2pp | 6.0%+0.4pp | 5.6%+1.4pp | 4.2%0.0pp | 4.2%-6.3pp | 10.5%+0.9pp | 9.6%+4.7pp | 4.9%-3.0pp | 7.9%+4.0pp | 3.9%-1.3pp | 5.2%-6.0pp | 11.2% | N/A |
| Current Ratio | 1.92-5.9x | 7.85+2.4x | 5.46+0.1x | 5.40-1.7x | 7.09+2.7x | 4.40+1.2x | 3.21+0.2x | 3.03-0.7x | 3.68-1.1x | 4.79-0.7x | 5.54+2.5x | 3.02 | N/A |
| Debt-to-Equity | 1.47-0.3x | 1.74+0.7x | 1.04-0.1x | 1.18+0.2x | 0.99+0.8x | 0.24+0.1x | 0.18-0.1x | 0.24-0.1x | 0.30+0.3x | 0.040.0x | 0.04 | N/A | N/A |
| FCF Margin | 13.6%-7.3pp | 20.9%+6.3pp | 14.6%+11.2pp | 3.4%-8.9pp | 12.3%-1.6pp | 13.9%+8.4pp | 5.5%-6.3pp | 11.8%-2.0pp | 13.8%+8.6pp | 5.2%-3.3pp | 8.5%+3.2pp | 5.2%-1.2pp | 6.4% |
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Where Alarm Com Hldgs Inc Ranks
Frequently Asked Questions
What is Alarm Com Hldgs Inc's annual revenue?
Alarm Com Hldgs Inc (ALRM) reported $1.0B in total revenue for fiscal year 2025. This represents a 7.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Alarm Com Hldgs Inc's revenue growing?
Alarm Com Hldgs Inc (ALRM) revenue grew by 7.6% year-over-year, from $939.8M to $1.0B in fiscal year 2025.
Is Alarm Com Hldgs Inc profitable?
Yes, Alarm Com Hldgs Inc (ALRM) reported a net income of $131.6M in fiscal year 2025, with a net profit margin of 13.0%.
What is Alarm Com Hldgs Inc's EBITDA?
Alarm Com Hldgs Inc (ALRM) had EBITDA of $164.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Alarm Com Hldgs Inc's gross margin?
Alarm Com Hldgs Inc (ALRM) had a gross margin of 66.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Alarm Com Hldgs Inc's operating margin?
Alarm Com Hldgs Inc (ALRM) had an operating margin of 13.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Alarm Com Hldgs Inc's net profit margin?
Alarm Com Hldgs Inc (ALRM) had a net profit margin of 13.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Alarm Com Hldgs Inc's return on equity (ROE)?
Alarm Com Hldgs Inc (ALRM) has a return on equity of 15.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Alarm Com Hldgs Inc's free cash flow?
Alarm Com Hldgs Inc (ALRM) generated $137.0M in free cash flow during fiscal year 2025. This represents a -30.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Alarm Com Hldgs Inc's operating cash flow?
Alarm Com Hldgs Inc (ALRM) generated $153.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Alarm Com Hldgs Inc's total assets?
Alarm Com Hldgs Inc (ALRM) had $2.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Alarm Com Hldgs Inc's capital expenditures?
Alarm Com Hldgs Inc (ALRM) invested $16.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Alarm Com Hldgs Inc spend on research and development?
Alarm Com Hldgs Inc (ALRM) invested $270.2M in research and development during fiscal year 2025.
What is Alarm Com Hldgs Inc's current ratio?
Alarm Com Hldgs Inc (ALRM) had a current ratio of 1.92 as of fiscal year 2025, which is generally considered healthy.
What is Alarm Com Hldgs Inc's debt-to-equity ratio?
Alarm Com Hldgs Inc (ALRM) had a debt-to-equity ratio of 1.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Alarm Com Hldgs Inc's return on assets (ROA)?
Alarm Com Hldgs Inc (ALRM) had a return on assets of 6.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Alarm Com Hldgs Inc's Altman Z-Score?
Alarm Com Hldgs Inc (ALRM) has an Altman Z-Score of 2.72, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Alarm Com Hldgs Inc's Piotroski F-Score?
Alarm Com Hldgs Inc (ALRM) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Alarm Com Hldgs Inc's earnings high quality?
Alarm Com Hldgs Inc (ALRM) has an earnings quality ratio of 1.16x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Alarm Com Hldgs Inc cover its interest payments?
Alarm Com Hldgs Inc (ALRM) has an interest coverage ratio of 7.73x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Alarm Com Hldgs Inc?
Alarm Com Hldgs Inc (ALRM) scores 61 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.