ARM Holdings (FRA:O9T) Pretax Margin % : 6.25% (As of Mar. 2024)

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What is ARM Holdings Pretax Margin %?

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. ARM Holdings's Pre-Tax Income for the three months ended in Mar. 2024 was €53 Mil. ARM Holdings's Revenue for the three months ended in Mar. 2024 was €854 Mil. Therefore, ARM Holdings's pretax margin for the quarter that ended in Mar. 2024 was 6.25%.

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

FRA:O9T' s Pretax Margin % Range Over the Past 10 Years
Min: 6.56 Med: 27.07 Max: 34.39
Current: 6.56

FRA:O9T's Pretax Margin % is ranked better than
54.16% of 986 companies
in the Semiconductors industry
Industry Median: 5.27 vs FRA:O9T: 6.56

ARM Holdings Pretax Margin % Historical Data

The historical data trend for ARM Holdings's Pretax 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.

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ARM Holdings Pretax Margin % Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Pretax Margin %

34.39

29.08

25.05

6.56

ARM Holdings Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Pretax Margin %	Get a 7-Day Free Trial					0.79	18.81	-14.76	17.72	6.25

Competitive Comparison of ARM Holdings's Pretax Margin %

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

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

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

ARM Holdings Pretax Margin % Calculation

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

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

Pretax Margin	=	Pre-Tax Income (A: Mar. 2024 )	/	Revenue (A: Mar. 2024 )
	=	195.04	/	2974.36
	=	6.56 %

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

Pretax Margin	=	Pre-Tax Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	53.36	/	853.76
	=	6.25 %

ARM Holdings (FRA:O9T) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.

ARM Holdings Pretax Margin % 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 » Pretax Margin %

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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