ARM Holdings (FRA:O9T) Receivables Turnover : 1.18 (As of Mar. 2024)

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What is ARM Holdings Receivables Turnover?

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. ARM Holdings's Revenue for the three months ended in Mar. 2024 was €854 Mil. ARM Holdings's average Accounts Receivable for the three months ended in Mar. 2024 was €726 Mil. Hence, ARM Holdings's Receivables Turnover for the three months ended in Mar. 2024 was 1.18.

ARM Holdings Receivables Turnover Historical Data

The historical data trend for ARM Holdings's Receivables 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.

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ARM Holdings Receivables Turnover Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Receivables Turnover

2.40

2.56

3.60

ARM Holdings Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Receivables Turnover	Get a 7-Day Free Trial					0.63	0.71	0.92	0.98	1.18

Competitive Comparison of ARM Holdings's Receivables Turnover

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

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

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

ARM Holdings Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

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

	Receivables Turnover (A: Mar. 2024 )
=	Revenue	/	Average Total Inventories
=	Revenue (A: Mar. 2024 )	/ (	(Accounts Receivable (A: Mar. 2023 )	+	Accounts Receivable (A: Mar. 2024 ))	/	count )
=	2974.36	/ (	(933.066	+	718.52)	/	2 )
=	2974.36	/	825.793
=	3.60

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

	Receivables Turnover (Q: Mar. 2024 )
=	Revenue	/	Average Total Inventories
=	Revenue (Q: Mar. 2024 )	/ (	(Accounts Receivable (Q: Dec. 2023 )	+	Accounts Receivable (Q: Mar. 2024 ))	/	count )
=	853.76	/ (	(732.683	+	718.52)	/	2 )
=	853.76	/	725.6015
=	1.18

ARM Holdings (FRA:O9T) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.

ARM Holdings Receivables Turnover 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 » Receivables Turnover

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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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