Debt-to-Equity Ratio
Higher than 22% of Technology sector peers
Updated 1078h ago
Sector Performance
22th percentileARM
0.05x
Sector Median
0.27x
Sector Avg
0.43x
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 0.27x, placing it in the 22th percentile.
Who are ARM's closest peers by Debt-to-Equity Ratio?
The closest Technology peers by Debt-to-Equity Ratio include: ACLS (0.04x), DIOD (0.03x), PLTR (0.03x), FORM (0.02x), AMBA (0.02x).
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.
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0.05x
Sector Median
0.27x
Sector Avg
0.43x
How ARM's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.