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ARM Holdings (ARM Holdings) Net Margin % : 24.14% (As of Mar. 2024)


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What is ARM Holdings Net Margin %?

Net margin is calculated as Net Income divided by its Revenue. ARM Holdings's Net Income for the three months ended in Mar. 2024 was $224 Mil. ARM Holdings's Revenue for the three months ended in Mar. 2024 was $928 Mil. Therefore, ARM Holdings's net margin for the quarter that ended in Mar. 2024 was 24.14%.

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

ARM' s Net Margin % Range Over the Past 10 Years
Min: 9.46   Med: 19.35   Max: 20.31
Current: 9.47

ARM's Net Margin % is ranked better than
64.71% of 986 companies
in the Semiconductors industry
Industry Median: 4.725 vs ARM: 9.47

ARM Holdings Net Margin % Historical Data

The historical data trend for ARM Holdings's Net Margin % 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 Net Margin % Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Net Margin %
19.14 20.31 19.56 9.46

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.47 15.56 -13.65 10.56 24.14

Competitive Comparison of ARM Holdings's Net Margin %

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

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

* The bar in red indicates where ARM Holdings's Net Margin % falls into.


ARM Holdings Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

ARM Holdings's Net Margin for the fiscal year that ended in Mar. 2024 is calculated as

Net Margin=Net Income (A: Mar. 2024 )/Revenue (A: Mar. 2024 )
=306/3233
=9.46 %

ARM Holdings's Net Margin for the quarter that ended in Mar. 2024 is calculated as

Net Margin=Net Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=224/928
=24.14 %

* 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) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

ARM Holdings Net Margin % 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 » Net Margin %
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.