ARMNEUTRAL

Return on Equity (ROE)

10.9%

Higher than 60% of Technology sector peers

Updated 1078h ago

Sector Performance

60th percentile

ARM

10.9%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders' equity — a 10.9% ROE means Arm earned $10.90 for every $100 of equity.

This is above the sector median of 6.7%, placing Arm in the 60th percentile among technology peers. The trend is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and no historical data beyond the current value exists. The combination of a moderately above-median ROE with no trend data offers limited insight, making it unclear whether performance is improving or deteriorating. This metric supports the overall NEUTRAL verdict, as the ROE is respectable but not exceptional, and the absence of historical context prevents a stronger bullish or bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ARM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ARM's Return on Equity (ROE) compare to its sector?

ARM's Return on Equity (ROE) of 10.9% compares to a Technology sector median of 6.5%, placing it in the 60th percentile.

Who are ARM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.