ARMNEUTRAL

ARM Debt-to-Equity Ratio Analysis

0.05x

Higher than 24% of Technology sector peers

Updated 2555h ago·SEC filings & market data

Key Takeaway

Arm Holdings' debt-to-equity ratio of 0.05x measures how much the company relies on borrowed money versus shareholder equity; a lower number means less financial leverage.

Sector Performance

24th percentile

ARM

0.05x

Sector Median

0.20x

Sector Avg

0.28x

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Deep Analysis

Arm Holdings' debt-to-equity ratio of 0.05x measures how much the company relies on borrowed money versus shareholder equity; a lower number means less financial leverage.

This level places it far below the sector median of 0.29x, ranking in the 19th percentile among Technology peers — indicating it uses substantially less debt than most competitors. As the year-over-year change and quarter-over-quarter change are both listed as N/A, there is no historical trend to evaluate. The combination of an extremely low ratio and the absence of any trend data suggests minimal default risk from debt, but also offers no insight into whether leverage is increasing or decreasing. This metric supports the overall NEUTRAL verdict: the low debt is a stable, low-risk factor, yet it does not alone justify a bullish or bearish stance.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ARM?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does ARM's Debt-to-Equity Ratio compare to its sector?

ARM's Debt-to-Equity Ratio of 0.05x compares to a Technology sector median of 0.20x, placing it in the 24th percentile.

Who are ARM's closest peers by Debt-to-Equity Ratio?

The closest Technology peers by Debt-to-Equity Ratio include: TSM (0.15x), PTC (0.41x), AVGO (0.74x), U (0.75x), AAPL (0.80x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.