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ARM Holdings (ARM Holdings) Debt-to-Equity : 0.04 (As of Mar. 2024)


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What is ARM Holdings Debt-to-Equity?

ARM Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $27 Mil. ARM Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $194 Mil. ARM Holdings's Total Stockholders Equity for the quarter that ended in Mar. 2024 was $5,295 Mil. ARM Holdings's debt to equity for the quarter that ended in Mar. 2024 was 0.04.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for ARM Holdings's Debt-to-Equity or its related term are showing as below:

ARM' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.04   Med: 0.05   Max: 0.07
Current: 0.04

During the past 4 years, the highest Debt-to-Equity Ratio of ARM Holdings was 0.07. The lowest was 0.04. And the median was 0.05.

ARM's Debt-to-Equity is ranked better than
82.93% of 873 companies
in the Semiconductors industry
Industry Median: 0.27 vs ARM: 0.04

ARM Holdings Debt-to-Equity Historical Data

The historical data trend for ARM Holdings's Debt-to-Equity 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.

ARM Holdings Debt-to-Equity Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Debt-to-Equity
N/A 0.07 0.05 0.04

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.05 0.05 0.05 0.05 0.04

Competitive Comparison of ARM Holdings's Debt-to-Equity

For the Semiconductors subindustry, ARM Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.

ARM Holdings's Debt-to-Equity Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Debt-to-Equity falls into.


ARM Holdings Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

ARM Holdings's Debt to Equity Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(27 + 194) / 5295
=0.04

ARM Holdings's Debt to Equity Ratio for the quarter that ended in Mar. 2024 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(27 + 194) / 5295
=0.04

* 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.

ARM Holdings  (NAS:ARM) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

ARM Holdings Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of ARM Holdings's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

ARM Holdings (ARM Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » Debt-to-Equity
Comparable Companies
NXPI MRVL MCHP ON MU GFS ADI MPWR SWKS QRVO NVDA TPE:2330 AVGO AMD INTC TXN QCOM XKRX:000660 TPE:2454 XTER:IFX
Traded in Other Exchanges
ARM:Mexico O9T:Germany O9T:Germany O9T:Germany
Address
110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
Website
https://www.arm.com
Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.