GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » ARM Holdings PLC (MEX:ARM) » Definitions » ROC (Joel Greenblatt) %

ARM Holdings (MEX:ARM) ROC (Joel Greenblatt) % : 43.88% (As of Sep. 2024)


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

What is ARM Holdings ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. ARM Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 43.88%.

The historical rank and industry rank for ARM Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:

MEX:ARM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 28.85   Med: 163.07   Max: 167.82
Current: 72.96

During the past 4 years, ARM Holdings's highest ROC (Joel Greenblatt) % was 167.82%. The lowest was 28.85%. And the median was 163.07%.

MEX:ARM's ROC (Joel Greenblatt) % is ranked better than
91.9% of 1000 companies
in the Semiconductors industry
Industry Median: 7.92 vs MEX:ARM: 72.96

ARM Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -22.00% per year.


ARM Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for ARM Holdings's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart

ARM Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
ROC (Joel Greenblatt) %
- 163.07 159.22 27.70

ARM Holdings Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -109.01 93.82 18.16 172.41 43.88

Competitive Comparison of ARM Holdings's ROC (Joel Greenblatt) %

For the Semiconductors subindustry, ARM Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ARM Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where ARM Holdings's ROC (Joel Greenblatt) % falls into.



ARM Holdings ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(14729.363 + 0 + 2125.132) - (3444.179 + 3828.902 + 11724.866)
=-2143.452

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(19808.442 + 0 + 1398.011) - (9608.866 + 4430.318 + 2992.926)
=4174.343

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of ARM Holdings for the quarter that ended in Sep. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=5040.716/( ( (8500.528 + max(-2143.452, 0)) + (10298.027 + max(4174.343, 0)) )/ 2 )
=5040.716/( ( 8500.528 + 14472.37 )/ 2 )
=5040.716/11486.449
=43.88 %

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

* 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  (MEX:ARM) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


ARM Holdings ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of ARM Holdings's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


ARM Holdings Business Description

Comparable Companies
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.