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ARM Holdings (FRA:O9T) Gross Profit : €3,112 Mil (TTM As of Sep. 2024)


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What is ARM Holdings Gross Profit?

ARM Holdings's gross profit for the three months ended in Sep. 2024 was €732 Mil. ARM Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2024 was €3,112 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. ARM Holdings's gross profit for the three months ended in Sep. 2024 was €732 Mil. ARM Holdings's Revenue for the three months ended in Sep. 2024 was €760 Mil. Therefore, ARM Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was 96.21%.

ARM Holdings had a gross margin of 96.21% for the quarter that ended in Sep. 2024 => Durable competitive advantage

During the past 4 years, the highest Gross Margin % of ARM Holdings was 96.04%. The lowest was 92.85%. And the median was 95.20%.


ARM Holdings Gross Profit Historical Data

The historical data trend for ARM Holdings's Gross Profit 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 Gross Profit Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Gross Profit
1,580.88 2,335.38 2,403.18 2,832.68

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 712.12 722.60 816.04 841.67 731.61

Competitive Comparison of ARM Holdings's Gross Profit

For the Semiconductors subindustry, ARM Holdings's Gross Profit, along with its competitors' market caps and Gross Profit 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 Gross Profit Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's Gross Profit distribution charts can be found below:

* The bar in red indicates where ARM Holdings's Gross Profit falls into.



ARM Holdings Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

ARM Holdings's Gross Profit for the fiscal year that ended in Mar. 2024 is calculated as

Gross Profit (A: Mar. 2024 )=Revenue - Cost of Goods Sold
=2974.36 - 141.68
=2,833

ARM Holdings's Gross Profit for the quarter that ended in Sep. 2024 is calculated as

Gross Profit (Q: Sep. 2024 )=Revenue - Cost of Goods Sold
=760.444 - 28.832
=732

Gross Profit 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 €3,112 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

ARM Holdings's Gross Margin % for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=(Revenue - Cost of Goods Sold) / Revenue
=732 / 760.444
=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 positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


ARM Holdings  (FRA:O9T) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

ARM Holdings had a gross margin of 96.21% for the quarter that ended in Sep. 2024 => Durable competitive advantage


ARM Holdings Gross Profit 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.

ARM Holdings Headlines

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