ARM (ARM Holdings) 5-Year ROIIC % (2024)

What is ARM Holdings 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. ARM Holdings does not have enough data to calculate 5-Year ROIIC %.

ARM Holdings 5-Year ROIIC % Historical Data

The historical data trend for ARM Holdings's 5-Year ROIIC % 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 5-Year ROIIC % Chart

ARM Holdings Annual Data
TrendMar21Mar22Mar23Mar24
5-Year ROIIC %
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ARM Holdings Quarterly Data
Mar21Mar22Jun22Sep22Dec22Mar23Jun23Sep23Dec23Mar24
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Competitive Comparison of ARM Holdings's 5-Year ROIIC %

For the Semiconductors subindustry, ARM Holdings's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where ARM Holdings's 5-Year ROIIC % falls into.


ARM Holdings 5-Year ROIIC % Calculation

ARM Holdings's 5-Year ROIIC % for the quarter that ended in Mar. 2024 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 168.8778 (Mar. 2024) - (Mar. 2019) )/( 4280 (Mar. 2024) - (Mar. 2019) )
=/
=N/A%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

ARM Holdings(NAS:ARM) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.

ARM Holdings 5-Year ROIIC % Related Terms

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ARM Holdings (ARM Holdings) Business Description

Industry

GURUFOCUS.COM »STOCK LIST »Technology » Semiconductors » ARM Holdings PLC (NAS:ARM) » Definitions » 5-Year ROIIC %

Comparable Companies

NXPI MRVL MCHP ON MU GFS ADI MPWR SWKS QRVO NVDA TPE:2330 AVGO AMD INTC TXN QCOM XKRX:000660 TPE:2454 XTER:IFX

Traded in Other Exchanges

ARM:Mexico O9T:Germany

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.

ARM Holdings (ARM Holdings) Headlines

From GuruFocus

Arm Announces Closing of Initial Public Offering and Full Exercise of Underwriters' Option to Purchase Additional American Depositary Shares

By Business Wire 09-18-2023

Looking Back on a Chilly Year for IPOs

By Wall Street Horizon 12-04-2023

Arm Announces Earnings Release Date for Third Quarter Fiscal Year Ended 2024

By Business Wire 01-09-2024

Arm Announces Appointment of Ami Badani as Chief Marketing Officer

By Business Wire 11-13-2023

Market Today: Tech Stocks Tumble as Bond Yields Rise, Alibaba Repurchases Shares

By GuruFocus Research 01-02-2024

ARM: The Biggest IPO of 2023

By Ben Alaimo 09-19-2023

Does the ARM IPO Offer Good Value?

By Yiannis Zourmpanos 09-15-2023

Arm Holdings plc Reports Results for the Second Quarter of the Financial Year Ending 2024

By Business Wire 11-08-2023

ARM (ARM Holdings)  5-Year ROIIC % (2024)
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