Arm Holdings plc American Depositary Shares (ARM) Return on Invested Capital (ROIC): 7.31%
Is Arm Holdings plc American Depositary Shares’s return on invested capital (ROIC) high or low?
Arm Holdings plc American Depositary Shares's return on invested capital (ROIC) of 7.31% is in line with its 5-year average of 6.68%, around the middle of its 5-year range (0.00%–11.36%).
The return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM) is 7.31% as of Tuesday, June 9, 2026. It is below its 12-month average by 16.88% (8.79%).
ARM Return on Invested Capital (ROIC) Chart
ARM Average Return on Invested Capital (ROIC) Chart
ARM Current vs Average Return on Invested Capital (ROIC) Chart
ARM Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
7.31%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
8.79%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
7.17%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
6.68%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
6.68%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
6.68%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
6.68%
CURRENT VS TTM AVG
-16.88%
CURRENT VS 3Y AVG
+1.88%
CURRENT VS 5Y AVG
+9.49%
CURRENT VS 10Y AVG
+9.49%
CURRENT VS 15Y AVG
+9.49%
CURRENT VS 20Y AVG
+9.49%
ARM Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Arm Holdings plc American Depositary Shares (ARM) | — | 7.31% | 8.79% | 7.17% | 6.68% |
| Palantir Technologies Inc. (PLTR) | $303.24B | 17.95% | 11.73% | 5.20% | -8.29% |
| Applied Materials, Inc. (AMAT) | $396.35B | 21.96% | 23.89% | 27.74% | 28.32% |
| Lam Research Corporation (LRCX) | $409.14B | 34.00% | 29.55% | 30.13% | 32.11% |
| KLA Corporation (KLAC) | $279.46B | 38.11% | 32.67% | 33.86% | 30.57% |
| Texas Instruments Incorporated (TXN) | $262.68B | 16.46% | 15.57% | 22.12% | 25.67% |
| International Business Machines Corporation (IBM) | $260.81B | 8.57% | 8.87% | 8.41% | 7.28% |
| Marvell Technology, Inc. (MRVL) | $233.47B | 5.98% | 1.05% | -0.75% | -1.12% |
| Cisco Systems, Inc. (CSCO) | $474.39B | 11.66% | 11.23% | 13.98% | 13.96% |
| QUALCOMM Incorporated (QCOM) | $216.51B | 13.15% | 17.25% | 21.91% | 22.63% |
Capital Efficiency
ROIC
7.3%
ROE
10.9%
Arm Holdings plc American Depositary Shares Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Arm Holdings plc American Depositary Shares Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The return on invested capital (ROIC) for ARM stock is 7.31%.
- Is Arm Holdings plc American Depositary Shares's return on invested capital (ROIC) high or low?
- Arm Holdings plc American Depositary Shares's return on invested capital (ROIC) of 7.31% is in line with its 5-year average of 6.68%, around the middle of its 5-year range (0.00%–11.36%).
- What is the TTM average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The TTM average return on invested capital (ROIC) for ARM stock is 8.79%.
- What is the 3Y average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The 3Y average return on invested capital (ROIC) for ARM stock is 7.17%.
- What is the 5Y average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The 5Y average return on invested capital (ROIC) for ARM stock is 6.68%.
- What is the 10Y average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The 10Y average return on invested capital (ROIC) for ARM stock is 6.68%.
- What is the 15Y average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The 15Y average return on invested capital (ROIC) for ARM stock is 6.68%.
- What is the 20Y average return on invested capital (ROIC) for Arm Holdings plc American Depositary Shares (ARM)?
- The 20Y average return on invested capital (ROIC) for ARM stock is 6.68%.
Arm Holdings plc American Depositary Shares Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2026-03-31 | 7.31% |
| 2025-03-31 | 10.28% |
| 2024-03-31 | 1.53% |
| 2023-03-31 | 9.58% |
| 2022-03-31 | 11.36% |
| 2021-03-31 | 0.00% |
Related Metrics
About Arm Holdings plc American Depositary Shares
Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Rene Anthony Andrada Haas