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ARM Holdings (ARM Holdings) Asset Turnover : 0.12 (As of Mar. 2024)


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What is ARM Holdings Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. ARM Holdings's Revenue for the three months ended in Mar. 2024 was $928 Mil. ARM Holdings's Total Assets for the quarter that ended in Mar. 2024 was $7,521 Mil. Therefore, ARM Holdings's Asset Turnover for the quarter that ended in Mar. 2024 was 0.12.

Asset Turnover is linked to ROE % through Du Pont Formula. ARM Holdings's annualized ROE % for the quarter that ended in Mar. 2024 was 17.40%. It is also linked to ROA % through Du Pont Formula. ARM Holdings's annualized ROA % for the quarter that ended in Mar. 2024 was 11.91%.


ARM Holdings Asset Turnover Historical Data

The historical data trend for ARM Holdings's Asset Turnover 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 Asset Turnover Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Asset Turnover
- 0.42 0.40 0.44

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.09 0.10 0.12 0.12 0.12

Competitive Comparison of ARM Holdings's Asset Turnover

For the Semiconductors subindustry, ARM Holdings's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Asset Turnover distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Asset Turnover falls into.



ARM Holdings Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Mar. 2024 )/( (Total Assets (A: Mar. 2023 )+Total Assets (A: Mar. 2024 ))/ count )
=3233/( (6866+7927)/ 2 )
=3233/7396.5
=0.44

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=928/( (7115+7927)/ 2 )
=928/7521
=0.12

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


ARM Holdings  (NAS:ARM) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

ARM Holdings's annulized ROE % for the quarter that ended in Mar. 2024 is

ROE %**(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=896/5149.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(896 / 3712)*(3712 / 7521)*(7521/ 5149.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.14 %*0.4936*1.4605
=ROA %*Equity Multiplier
=11.91 %*1.4605
=17.40 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

ARM Holdings's annulized ROA % for the quarter that ended in Mar. 2024 is

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=896/7521
=(Net Income / Revenue)*(Revenue / Total Assets)
=(896 / 3712)*(3712 / 7521)
=Net Margin %*Asset Turnover
=24.14 %*0.4936
=11.91 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


ARM Holdings Asset Turnover Related Terms

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ARM Holdings (ARM Holdings) Business Description

Traded in Other Exchanges
Address
110 Fulbourn Road, Cambridge, GBR, CB1 9NJ
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.