ARM Current Ratio Analysis
Higher than 91% of Technology sector peers
Updated 2555h ago·SEC filings & market data
Key Takeaway
A company's current ratio compares its short-term assets to its short-term liabilities, and a ratio of 6.00x means Arm Holdings holds $6.00 in current assets for every $1.00 of current liabilities, indicating strong liquidity.
Sector Performance
91th percentileARM
6.00x
Sector Median
1.99x
Sector Avg
15.09x
Deep Analysis
A company's current ratio compares its short-term assets to its short-term liabilities, and a ratio of 6.00x means Arm Holdings holds $6.00 in current assets for every $1.00 of current liabilities, indicating strong liquidity.
Among Technology sector peers, the median current ratio is 1.77x, and Arm's ratio places it in the 88th percentile, well above most competitors. Because no year-over-year or quarter-over-quarter change data is available (listed as N/A), and only a single historical value of 6.00x is reported, no trend can be assessed from the provided information. The combination of a very high current ratio with no trend data suggests minimal immediate liquidity risk, but also raises a question about whether the company is using its cash efficiently, which could be an opportunity for improvement. This metric does not contradict the overall NEUTRAL verdict, as a high current ratio alone does not signal a clear buy or sell — it simply confirms Arm has ample short-term financial flexibility, a neutral factor when balanced against other considerations.
Frequently Asked Questions
What does the Current Ratio tell investors about ARM?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does ARM's Current Ratio compare to its sector?
ARM's Current Ratio of 6.00x compares to a Technology sector median of 1.99x, placing it in the 91th percentile.
Who are ARM's closest peers by Current Ratio?
The closest Technology peers by Current Ratio include: SMAR (1.51x), ASML (1.36x), ACN (1.34x), BRZE (1.24x), BR (1.24x).
Learn More About Current Ratio
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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6.00x
Sector Median
1.99x
Sector Avg
15.09x
How ARM's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.