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ARM (ARM Holdings) Cost of Goods Sold : $142 Mil (TTM As of Sep. 2024)


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What is ARM Holdings Cost of Goods Sold?

ARM Holdings's cost of goods sold for the three months ended in Sep. 2024 was $32 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Sep. 2024 was $142 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. ARM Holdings's Gross Margin % for the three months ended in Sep. 2024 was 96.21%.

Cost of Goods Sold is also directly linked to Inventory Turnover.


ARM Holdings Cost of Goods Sold Historical Data

The historical data trend for ARM Holdings's Cost of Goods Sold 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 Cost of Goods Sold Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Cost of Goods Sold
145.00 131.00 106.00 154.00

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cost of Goods Sold Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.00 36.00 41.00 33.00 32.00

ARM Holdings Cost of Goods Sold Calculation

Cost of Goods Sold is the aggregate cost of goods produced and sold, and services rendered during the reporting period. It excludes Total Operating Expense, such as Depreciation, Depletion and Amortization and Selling, General, & Admin. Expense.

Cost of Goods Sold for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $142 Mil.

* 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  (NAS:ARM) Cost of Goods Sold Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

ARM Holdings's Gross Margin % for the three months ended in Sep. 2024 is calculated as:

Gross Margin %=(Revenue - Cost of Goods Sold) / Revenue
=(844 - 32) / 844
=96.21 %

* 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.

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

ARM Holdings's Inventory Turnover for the three months ended in Sep. 2024 is calculated as:

* 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.

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.


ARM Holdings Cost of Goods Sold Related Terms

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ARM Holdings Business Description

Traded in Other Exchanges
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. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.