ARM HoldingsARM +0.40%62 Quick 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 88.53% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. ARM Holdings's quick ratio for the quarter that ended in Mar. 2026 was 6.00.
ARM Holdings has a quick ratio of 6.00. It generally indicates good short-term financial strength.
The historical rank and industry rank for ARM Holdings's Quick Ratio or its related term are showing as below:
ARM'
s Quick 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 Quick Ratio was 6.00. The lowest was 2.22. And the median was 2.79.
ARM's Quick Ratio is ranked better than 88.53% of 1029
companies
in the Semiconductors industry
Industry Median: 1.85
vs ARM: 6.00
ARM Holdings (NAS:ARM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
ARM Holdings Quick Ratio Related Terms
ARM Holdings Quick Ratio Historical Data
* Premium members only.
The historical data trend for ARM Holdings's Quick 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 Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
ARM Holdings's Quick Ratio for the fiscal year that ended in Mar. 2026 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.
ARM Holdings (ARM) has a Quick Ratio of 6.00 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on ARM Holdings and its competitors. This is 115% above median its historical median of 2.79. Over the past decade, ARM Holdings' Quick Ratio has ranged from 2.22 to 6.00. According to the industry distribution chart, ARM Holdings ranks #118 out of 1029 companies in the Semiconductors industry, placing it in the top 11.5%.
Is ARM Holdings' Quick Ratio too high?
ARM Holdings' current Quick 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 Quick Ratio is 1.85. ARM Holdings' value of 6.00 is 224.3% above this industry median. Based on the distribution chart, ARM Holdings ranks #118 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' Quick Ratio compare to TXN and QCOM?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #118 out of 1029 companies for Quick Ratio. This places ARM Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.85. ARM Holdings' value of 6.00 is 224.3% above this benchmark. Historically, ARM Holdings' own Quick 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 1.85, 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 Quick Ratio for a Semiconductors company?
The median Quick Ratio among Semiconductors companies is 1.85, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Quick Ratio of 6.00 is 224.3% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Quick Ratio is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Quick 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 $360.50 — trading 102.9% above its estimated fair value. The current Quick Ratio is 6.00, which is 115% above median its 10-year median of 2.79 and 224.3% above the Semiconductors industry median of 1.85. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For ARM Holdings (ARM), the current Quick 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 $360.50 is trading 102.9% above its estimated GF Value™ of $177.63.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Quick Ratio: 6.00 (115% above median its 10-year median of 2.79)
GF Value™: $177.63 vs. price of $360.50 (102.9% above fair value)
Industry Position: 224.3% above the Semiconductors median (#118 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
Get the complete analysis for ARM
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ARM has been successfully added to your 
