ARM HoldingsARM -3.15%62 Current Ratio is 6.00 as of Mar. 2026, which is 115% above its 10-year median of 2.79. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $177.63 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,029 Semiconductors companies, ARM Holdings ranks better than 84.35% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. ARM Holdings's current ratio for the quarter that ended in Mar. 2026 was 6.00.
ARM Holdings has a current ratio of 6.00. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for ARM Holdings's Current Ratio or its related term are showing as below:
ARM'
s Current Ratio Range Over the Past 10 Years
Min: 2.22 Med: 2.79 Max: 6
Current: 6
During the past 6 years, ARM Holdings's highest Current Ratio was 6.00. The lowest was 2.22. And the median was 2.79.
ARM's Current Ratio is ranked better than 84.35% of 1029
companies
in the Semiconductors industry
Industry Median: 2.49
vs ARM: 6.00
ARM Holdings (NAS:ARM) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
ARM Holdings Current Ratio Related Terms
ARM Holdings Current Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Current 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 Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Current 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 Current Ratio of 6.00 as of Mar. 2026. This is 115% above median its historical median of 2.79. Over the past decade, ARM Holdings' Current Ratio has ranged from 2.22 to 6.00. According to the industry distribution chart, ARM Holdings ranks #161 out of 1029 companies in the Semiconductors industry, placing it in the top 15.6%.
Is ARM Holdings' Current Ratio too high?
ARM Holdings' current Current Ratio of 6.00 is 115% above median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 2.22 to a high of 6.00. The Semiconductors industry median Current Ratio is 2.49. ARM Holdings' value of 6.00 is 141% above this industry median. Based on the distribution chart, ARM Holdings ranks #161 out of 1029 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 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ARM Holdings' Current Ratio compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #161 out of 1029 companies for Current Ratio. This places ARM Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.49. ARM Holdings' value of 6.00 is 141% above this benchmark. Historically, ARM Holdings' own Current Ratio has ranged from 2.22 to 6.00 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 2.49, 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 Current Ratio for a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.49, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Current Ratio of 6.00 is 141% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Current Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Current Ratio is 6.00, which is 115% above median its own 10-year median of 2.79. 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 $177.63, compared to a current price of $347.77 — trading 95.8% above its estimated fair value. The current Current Ratio is 6.00, which is 115% above median its 10-year median of 2.79 and 141% above the Semiconductors industry median of 2.49. ARM Holdings' overall GF Score™ is 62/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For ARM Holdings (ARM), the current Current Ratio is 6.00 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 $347.77 is trading 95.8% above its estimated GF Value™ of $177.63.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Current Ratio: 6.00 (115% above median its 10-year median of 2.79)
GF Value™: $177.63 vs. price of $347.77 (95.8% above fair value)
Industry Position: 141% above the Semiconductors median (#161 of 1029)
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.
62GF Score
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