ARM Holdings (FRA:O9T) EBIT : €105 Mil (TTM As of Mar. 2024)

View and export this data going back to 2023. Start your Free Trial

What is ARM Holdings EBIT?

ARM Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was €20 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was €105 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ARM Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was 7.88%. ARM Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 18.42%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. ARM Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 0.08%.

ARM Holdings EBIT Historical Data

The historical data trend for ARM Holdings's EBIT 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.

* Premium members only.

ARM Holdings EBIT Chart

ARM Holdings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

EBIT

203.28

617.44

633.25

107.64

ARM Holdings Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
EBIT	Get a 7-Day Free Trial					-45.77	102.45	-146.17	128.38	20.24

Competitive Comparison of ARM Holdings's EBIT

For the Semiconductors subindustry, ARM Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where ARM Holdings's EV-to-EBIT falls into.

ARM Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €105 Mil.

ARM Holdings (FRA:O9T) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

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

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	80.96 * ( 1 - -286.21% )	/	( (3995.369	+	3937.6)	/ 2 )
=	312.675616	/	3966.4845
=	7.88 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6524.455	-	327.369	-	( 2201.717	-	max(0, 794.122	-	3326.876	+	2201.717	))
=	3995.369

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7292.84	-	878.6	-	( 2689.16	-	max(0, 1384.6	-	3861.24	+	2689.16	))
=	3937.6

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

2. Joel Greenblatt's definition of Return on Capital:

ARM Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	80.96	/	( ( (389.725 + max(102.704, 0))	+	(386.4 + max(-492.2, 0)) )	/	2 )
=	80.96	/	( ( 492.429	+	386.4 )	/	2 )
=	80.96	/	439.4145
=	18.42 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(732.683	+	0	+	135.716)	-	(327.369	+	210.91	+	227.416)
=	102.704

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(718.52	+	0	+	144.44)	-	(878.6	+	188.6	+	287.96)
=	-492.2

When net working capital is negative, 0 is used.

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

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

ARM Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2024 )
	=	104.901	/	130791.318
	=	0.08 %

ARM Holdings EBIT Related Terms

Thank you for viewing the detailed overview of ARM Holdings's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.

ARM Holdings (FRA:O9T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (FRA:O9T) » Definitions » EBIT

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.

ARM Holdings (FRA:O9T) Headlines

No Headlines