ARM HoldingsARM -6.77%69 Cash Ratio is 3.46 as of Mar. 2026, which is 78% above its 10-year median of 1.94. GuruFocus rates ARM with a GF Score™ of 69/100 and a GF Value™ of $178.78 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,021 Semiconductors companies, ARM Holdings ranks better than 82.27% on this metric.
ARM Holdings has a Cash Ratio of 3.46. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for ARM Holdings's Cash Ratio or its related term are showing as below:
ARM'
s Cash Ratio Range Over the Past 10 Years
Min: 1.17 Med: 1.94 Max: 3.46
Current: 3.46
During the past 6 years, ARM Holdings's highest Cash Ratio was 3.46. The lowest was 1.17. And the median was 1.94.
ARM's Cash Ratio is ranked better than 82.27% of 1021
companies
in the Semiconductors industry
Industry Median: 1.04
vs ARM: 3.46
ARM Holdings (NAS:ARM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
ARM Holdings Cash Ratio Related Terms
ARM Holdings Cash Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Cash Ratio 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.
For the Semiconductors subindustry, ARM Holdings's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Cash Ratio falls into.
* 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.
ARM Holdings (ARM) has a Cash Ratio of 3.46 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on ARM Holdings and its competitors. This is 78% above median its historical median of 1.94. Over the past decade, ARM Holdings' Cash Ratio has ranged from 1.17 to 3.46. According to the industry distribution chart, ARM Holdings ranks #181 out of 1021 companies in the Semiconductors industry, placing it in the top 17.7%.
Is ARM Holdings' Cash Ratio too high?
ARM Holdings' current Cash Ratio of 3.46 is 78% above median its 10-year median of 1.94. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 3.46. The Semiconductors industry median Cash Ratio is 1.04. ARM Holdings' value of 3.46 is 232.7% above this industry median. Based on the distribution chart, ARM Holdings ranks #181 out of 1021 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, ARM Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Cash Ratio compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #181 out of 1021 companies for Cash Ratio. This places ARM Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 1.04. ARM Holdings' value of 3.46 is 232.7% above this benchmark. Historically, ARM Holdings' own Cash Ratio has ranged from 1.17 to 3.46 over the past decade. While the company's 10-year median is 1.94 vs. the industry median of 1.04, ARM Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Semiconductors company?
The median Cash Ratio among Semiconductors companies is 1.04, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Cash Ratio of 3.46 is 232.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Cash Ratio is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Cash Ratio is 3.46, which is 78% above median its own 10-year median of 1.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Holdings stock overvalued right now?
Based on GuruFocus' analysis, ARM Holdings (ARM) is currently considered Significantly Overvalued. The stock's GF Value™ is $178.78, compared to a current price of $300.43 — trading 68% above its estimated fair value. The current Cash Ratio is 3.46, which is 78% above median its 10-year median of 1.94 and 232.7% above the Semiconductors industry median of 1.04. ARM Holdings' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For ARM Holdings (ARM), the current Cash Ratio is 3.46 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ARM Holdings (ARM) Overvalued in 2026?
Based on GuruFocus' analysis, ARM Holdings stock appears to be overvalued.
The current stock price of $300.43 is trading 68% above its estimated GF Value™ of $178.78.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Cash Ratio: 3.46 (78% above median its 10-year median of 1.94)
GF Value™: $178.78 vs. price of $300.43 (68% above fair value)
Industry Position: 232.7% above the Semiconductors median (#181 of 1021)
No single metric tells the full story. See the ARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arm Holdings is the IP owner and developer of the Arm architecture, which is used in 99% of the world's smartphone CPU cores. It also has high market share in other battery-powered devices like wearables, tablets, and 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 allow 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. In 2026, Arm announced the launch of its own CPU products on top of its existing royalty business.
69GF Score
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