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ARM Holdings (ARM Holdings) FCF Yield % : 0.83 (As of May. 17, 2024)


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What is ARM Holdings FCF Yield %?

FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

As of today, ARM Holdings's Trailing 12-Month Free Cash Flow is $947 Mil, and Market Cap is $114,551 Mil. Therefore, ARM Holdings's FCF Yield % for today is 0.83%.

The historical rank and industry rank for ARM Holdings's FCF Yield % or its related term are showing as below:

ARM' s FCF Yield % Range Over the Past 10 Years
Min: 0.51   Med: 1.04   Max: 1.84
Current: 0.83

During the past 4 years, the highest FCF Yield % of ARM Holdings was 1.84%. The lowest was 0.51%. And the median was 1.04%.

ARM's FCF Yield % is ranked better than
58.36% of 999 companies
in the Semiconductors industry
Industry Median: -0.29 vs ARM: 0.83

ARM Holdings's FCF Margin % for the quarter that ended in Mar. 2024 was 69.83%.

ARM Holdings FCF Yield % Historical Data

The historical data trend for ARM Holdings's FCF Yield % 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 FCF Yield % Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
FCF Yield %
- - - 0.73

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
FCF Yield % Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 1.31 1.34 1.99

Competitive Comparison of ARM Holdings's FCF Yield %

For the Semiconductors subindustry, ARM Holdings's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's FCF Yield % distribution charts can be found below:

* The bar in red indicates where ARM Holdings's FCF Yield % falls into.


ARM Holdings FCF Yield % Calculation

FCF Yield % is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

ARM Holdings's FCF Yield % for the fiscal year that ended in Mar. 2024 is calculated as

FCF Yield %=Free Cash Flow / Market Cap
=947 / 130030.8467
=0.73%

ARM Holdings's annualized FCF Yield % for the quarter that ended in Mar. 2024 is calculated as

FCF Yield %=Free Cash Flow * Annualized Factor / Market Cap
=648 * 4 / 130030.8467
=1.99%

* 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 FCF Yield % Explanation

Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.

ARM Holdings FCF Yield % Related Terms

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ARM Holdings (ARM Holdings) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » FCF Yield %
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.