Total assets expanded from $7.9B to $11.4B with a debt-to-equity ratio of just 0.06 and cash of $3.3B, indicating a minimal-leverage capital structure with negligible refinancing risk.
Arm Holdings plc American Depositary Shares (ARM) balance sheet — 5-year assets, liabilities & shareholders' equity history
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 |
|---|
| Total Current Assets | 6.34B | 6.24B | 4.83B | 4.2B | 3.54B | 3.09B |
| Cash & Short-Term Investments | 3.89B | 3.6B | 2.83B | 2.92B | 2.21B | 1.64B |
| Cash Only | 3.06B | 2.75B | 2.08B | 1.92B | 1.55B | 1B |
| Short-Term Investments | 830M | 850M | 740M | 1B | 661M | 631M |
| Accounts Receivable | 2B | 2.47B | 1.9B | 1.13B | 1.17B | 1.29B |
| Days Sales Outstanding | 149.6 | 182.95 | 172.89 | 127.46 | 158.73 | 174.2 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - |
| Other Current Assets | 451M | 0 | 0 | 145M | 157M | 167M |
| Total Non-Current Assets | 4.86B | 4.47B | 4.1B | 3.73B | 3.33B | 3.42B |
| Property, Plant & Equipment | 1.39B | 1.15B | 714M | 420M | 391M | 417M |
| Fixed Asset Turnover | 4.35x | 4.27x | 5.61x | 7.70x | 6.85x | 6.48x |
| Goodwill | 1.62B | 1.62B | 1.62B | 1.63B | 1.62B | 1.64B |
| Intangible Assets | 217M | 230M | 151M | 152M | 138M | 205M |
| Long-Term Investments | 2.52B | 387M | 962.8M | 773.4M | 753.9M | 765M |
| Other Non-Current Assets | 612M | 701M | 253.2M | 477.6M | 287.1M | 260M |
| Total Assets | 11.2B | 10.7B | 8.93B | 7.93B | 6.87B | 6.51B |
| Asset Turnover | 0.49x | 0.46x | 0.45x | 0.41x | 0.39x | 0.42x |
| Asset Growth % | 78.86% | 19.83% | 12.68% | 15.45% | 5.47% | - |
| Total Current Liabilities | 1.21B | 1.04B | 929M | 1.5B | 1.36B | 1.4B |
| Accounts Payable | 0 | 80M | 63M | 26M | 65M | 57M |
| Days Payables Outstanding | 85.55 | 78.92 | 111.63 | 40.56 | 121.67 | 94.57 |
| Short-Term Debt | 0 | 0 | 40M | 32M | 26M | 31M |
| Deferred Revenue (Current) | 1.13B | 294M | 209M | 198M | 293M | 334M |
| Other Current Liabilities | 852M | 225M | 153M | 130M | 228M | 202M |
| Current Ratio | 5.25x | 6.00x | 5.20x | 2.79x | 2.60x | 2.22x |
| Quick Ratio | 5.25x | 6.00x | 5.20x | 2.79x | 2.60x | 2.22x |
| Cash Conversion Cycle | 64.05 | - | - | - | - | - |
| Total Non-Current Liabilities | 1.36B | 1.38B | 1.16B | 1.13B | 1.45B | 1.57B |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 1.59B | 393M | 316M | 194M | 193M | 230M |
| Deferred Tax Liabilities | 95M | 39M | 42.6M | 150.5M | 262M | 279M |
| Other Non-Current Liabilities | 174M | 193M | 103.4M | 65.5M | 190M | 266M |
| Total Liabilities | 2.57B | 2.42B | 2.09B | 2.63B | 2.81B | 2.96B |
| Total Debt | 464M | 457M | 356M | 226M | 219M | 261M |
| Net Debt | -2.59B | -2.29B | -1.73B | -1.7B | -1.33B | -743M |
| Debt / Equity | 0.05x | 0.06x | 0.05x | 0.04x | 0.05x | 0.07x |
| Debt / EBITDA | 0.40x | 0.39x | 0.35x | 0.87x | 0.26x | 0.30x |
| Net Debt / EBITDA | -2.24x | -1.98x | -1.71x | -6.50x | -1.57x | -0.87x |
| Interest Coverage | - | - | - | - | - | - |
| Total Equity | 8.63B | 8.29B | 6.84B | 5.29B | 4.05B | 3.55B |
| Equity Growth % | 89.01% | 21.16% | 29.16% | 30.71% | 14.18% | - |
| Book Value per Share | 8.01 | 7.76 | 6.43 | 5.07 | 3.95 | 3.46 |
| Total Shareholders' Equity | 8.63B | 8.29B | 6.84B | 5.29B | 4.05B | 3.55B |
| Common Stock | 2M | 2M | 2M | 2M | 2M | 2M |
| Retained Earnings | 4.72B | 4.45B | 3.54B | 2.75B | 2.46B | 1.93B |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 373M | 370M | 372M | 371M | 376M | 399M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ARM stock.
As of 2026, Arm Holdings plc American Depositary Shares (ARM) had total assets of $10.70B including $6.24B in current assets.
Arm Holdings plc American Depositary Shares (ARM) carries total debt of $457.0M, offset by $3.60B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Arm Holdings plc American Depositary Shares (ARM) has total shareholders' equity (book value) of $8.29B ($7.76 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Arm Holdings plc American Depositary Shares (ARM) reported a current ratio of 6.00x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.
Key Metrics
Top Statement Risk
Customer concentration and China exposure
Balance Sheet Strengthening Through Retained Earnings
Based on reported figures, ARM's total assets rose from $7.9B in 2025Q1 to $11.4B in 2027Q2 while equity climbed from $5.7B to $9.1B, indicating the balance sheet has been strengthening steadily rather than being propped up by borrowing.
Retained earnings grew from $3.0B to $4.8B over the same period, suggesting that internally generated profits, rather than external capital, are driving most of the equity expansion. Liabilities grew far more slowly than assets, which appears consistent with a business that is becoming more self-funded over time. Investors should monitor whether this retained-earnings-led growth can persist if reinvestment needs rise.
Cash Build Provides Substantial Shock Buffer
According to the reported quarterly statements, ARM's cash position rose from $1.5B to $3.3B across ten quarters while the current ratio stayed above 3.6x, suggesting a very wide near-term liquidity cushion.
A current ratio consistently between roughly 3.6x and 6.4x indicates current assets far exceed current liabilities, which may reduce dependence on external financing during downturns. The cash build outpaced the modest growth in total liabilities, implying that the company is accumulating liquidity rather than deploying it. Given that cash flow has been volatile quarter to quarter, this buffer appears to be a key support for the balance sheet.
Minimal Leverage Keeps Refinancing Risk Low
As reported in the financial statements, ARM's total debt stayed near $250M to $500M with a debt-to-equity ratio between 0.04 and 0.11, indicating leverage remains negligible relative to the equity base.
The low debt-to-equity profile suggests the company is not reliant on borrowing to fund operations or growth, which lowers refinancing exposure. The one spike to roughly $858M in 2026Q3 appears to be an isolated increase that reversed in the following quarter, warranting monitoring rather than alarm. Overall, leverage does not appear to constrain the company's cash flow durability.
Asset-Light Model With Rising Capital Base
Based on ARM's reported figures, net PP&E grew from $464M to $1.4B while goodwill held steady near $1.6B to $1.7B, indicating an asset base that is gradually becoming more capital-intensive without material acquisition-driven inflation.
The rise in net PP&E is consistent with investment in infrastructure supporting higher-value compute offerings, though the absolute level remains modest relative to total assets. Goodwill's stability suggests limited acquisition-related impairment risk in the near term. The mix still points to an intellectual-property-driven business model rather than a heavy manufacturing one.
Stock Compensation Obscures Equity Economics
As reported in the statements, stock-based compensation of roughly $193M to $376M per quarter may be understating the true economic cost of employee pay that is absorbed by equity holders through dilution.
While the balance sheet looks strong on headline figures, recurring equity-settled compensation can gradually dilute existing shareholders and inflate retained earnings metrics relative to cash economics. The buyback activity seen in 2026 appears modest against this level of issuance, which may limit its offset effect. Analysts should assess net dilution rather than relying on the gross equity figure alone.