ARM HoldingsARM +3.20%62 Receivables Turnover is 1.30 as of Mar. 2026. GuruFocus rates ARM with a GF Score™ of 62/100 and a GF Value™ of $178.26 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,018 Semiconductors companies, ARM Holdings ranks worse than 73.08% on this metric.
The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. ARM Holdings's Revenue for the
three
months ended in Mar. 2026 was $1,490 Mil. ARM Holdings's average Accounts Receivable for the
three
months ended in Mar. 2026 was $1,142 Mil.
Hence, ARM Holdings's Receivables Turnover for the
three
months ended in Mar. 2026 was 1.30.
ARM Holdings (NAS:ARM) Receivables Turnover Explanation
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
ARM Holdings Receivables Turnover Related Terms
ARM Holdings Receivables Turnover Historical Data
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The historical data trend for ARM Holdings's Receivables Turnover 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.
ARM vs TXN, MRVL, QCOM: Receivables Turnover Comparison
For the Semiconductors subindustry, ARM Holdings's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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 Receivables Turnover vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ARM Holdings's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where ARM Holdings's Receivables Turnover 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 Receivables Turnover of 1.30 as of Mar. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on ARM Holdings and its competitors. According to the industry distribution chart, ARM Holdings ranks #744 out of 1018 companies in the Semiconductors industry, placing it in the top 73.1%.
Is ARM Holdings' Receivables Turnover too high?
ARM Holdings' current Receivables Turnover is 1.30. The Semiconductors industry median Receivables Turnover is 5.82. ARM Holdings' value of 1.30 is 77.6% below this industry median. Based on the distribution chart, ARM Holdings ranks #744 out of 1018 companies in the Semiconductors industry, which is below the industry midpoint. 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' Receivables Turnover compare to TXN and MRVL?
According to the Semiconductors industry distribution chart, ARM Holdings ranks #744 out of 1018 companies for Receivables Turnover. This places ARM Holdings in the lower half of its industry. The industry median Receivables Turnover is 5.82. ARM Holdings' value of 1.30 is 77.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Semiconductors company?
The median Receivables Turnover among Semiconductors companies is 5.82, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ARM Holdings's current Receivables Turnover of 1.30 is 77.6% below 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 Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on ARM Holdings and its competitors. For the Semiconductors industry, the median Receivables Turnover is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Holdings's current Receivables Turnover is 1.30. 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 $178.26, compared to a current price of $354.57 — trading 98.9% above its estimated fair value. The current Receivables Turnover is 1.30 and 77.6% below the Semiconductors industry median of 5.82. 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 Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For ARM Holdings (ARM), the current Receivables Turnover is 1.30 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 $354.57 is trading 98.9% above its estimated GF Value™ of $178.26.
GuruFocus considers ARM Holdings to be Significantly Overvalued.
Key valuation signals for ARM:
Receivables Turnover: 1.30
GF Value™: $178.26 vs. price of $354.57 (98.9% above fair value)
Industry Position: 77.6% below the Semiconductors median (#744 of 1018)
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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