ARM Holdings (FRA:O9T) Cash-to-Debt : 13.23 (As of Mar. 2024)

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What is ARM Holdings Cash-to-Debt?

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. ARM Holdings's cash to debt ratio for the quarter that ended in Mar. 2024 was 13.23.

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, ARM Holdings could pay off its debt using the cash in hand for the quarter that ended in Mar. 2024.

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

FRA:O9T' s Cash-to-Debt Range Over the Past 10 Years
Min: 6.26 Med: 10.11 Max: 13.23
Current: 13.23

During the past 4 years, ARM Holdings's highest Cash to Debt Ratio was 13.23. The lowest was 6.26. And the median was 10.11.

FRA:O9T's Cash-to-Debt is ranked better than
76.16% of 994 companies
in the Semiconductors industry
Industry Median: 1.79 vs FRA:O9T: 13.23

ARM Holdings Cash-to-Debt Historical Data

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

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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ARM Holdings Cash-to-Debt Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Cash-to-Debt

N/A

6.26

10.11

13.23

ARM Holdings Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash-to-Debt	Get a 7-Day Free Trial					10.11	9.19	10.31	10.62	13.23

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

For the Semiconductors subindustry, ARM Holdings's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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 Cash-to-Debt Distribution in the Semiconductors Industry

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

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

ARM Holdings Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

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

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	2689.16	/	(24.84	+	178.48)
	=	13.23

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

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	2689.16	/	(24.84	+	178.48)
	=	13.23

ARM Holdings (FRA:O9T) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

ARM Holdings Cash-to-Debt Related Terms

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ARM Holdings (FRA:O9T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (FRA:O9T) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

ARM:USA ARM:Mexico

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.

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