ARM Holdings (FRA:O9T) ROCE % : 1.39% (As of Mar. 2024)

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What is ARM Holdings ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. ARM Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was 1.39%.

ARM Holdings ROCE % Historical Data

The historical data trend for ARM Holdings's ROCE % 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.
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ARM Holdings ROCE % Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

13.29

12.94

1.95

ARM Holdings Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial					-3.56	7.84	-10.68	9.04	1.39

ARM Holdings ROCE % Calculation

ARM Holdings's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	107.64	/	( ( (6412.844 - 1273.042)	+	(7292.84 - 1384.6) )	/ 2 )
	=	107.64	/	( (5139.802	+	5908.24)	/ 2 )
	=	107.64	/	5524.021
	=	1.95 %

ARM Holdings's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	80.96	/	( ( (6524.455 - 794.122)	+	(7292.84 - 1384.6) )	/ 2 )
	=	80.96	/	( ( 5730.333	+	5908.24 )	/ 2 )
	=	80.96	/	5819.2865
	=	1.39 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

ARM Holdings (FRA:O9T) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

ARM Holdings ROCE % Related Terms

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ARM Holdings (FRA:O9T) Business Description

Industry

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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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