What is Alarm.com Holdings's return on invested capital?

Alarm.com Holdings (ALRM) reported return on invested capital of 186% in Q1 2024.

What does return on invested capital mean?

Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.

Alarm.com Holdings ALRM Return on invested capital

Return on invested capital at other companies

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10.6%+4.3pp

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Other financials

Income statement

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Revenue$265.2M+11.0%

Gross profit$174.7M+8.8%

Operating income$31.6M+6.7%

Net income$23.4M-15.6%

EPS (diluted)$0.47-9.6%

Balance sheet

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Cash & equivalents$503.6M-57.8%

Total debt$76.4M-2.6%

Total equity$859.8M+13.2%

Total assets$1.6B-20.9%

Cash flow

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Operating cash flow$50.6M+110%

CapEx$912.0K-85.1%

Free cash flow$49.7M+177%

Valuation

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Market cap$2.13B-22.4%

Enterprise value$1.7B+4.3%

P/E16.7×-4.9×

P/S2.1×-0.8×

Profitability

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Gross margin65.8%+0.1pp

Operating margin13.1%+0.6pp

Net margin12.3%-1.0pp

FCF margin16.3%-1.3pp

Returns & leverage

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Return on equity15.7%-1.3pp

Debt / equity0.1×0.0×

Current ratio5.2×+3.0×

Where this comes from

Calculated from Alarm.com Holdings’s reported figures.

nopat/invested capital=186%

Based on trailing twelve months.

The official record: Alarm.com Holdings’s 10-Q, filed May 9, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is Alarm.com Holdings's return on invested capital?: Alarm.com Holdings (ALRM) reported return on invested capital of 186% in Q1 2024.
What does return on invested capital mean?: Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.