ARM (ARM) Financials

ARM Holdings PLC’s balance sheet data comparing fiscal years 2023 and 2024 reveals several key trends and financial shifts that investors should note:

• Increase in Cash & Equivalents: Cash and equivalents rose from $1.55 billion in 2023 to $1.92 billion in 2024, enhancing liquidity and financial flexibility.
• Growth in Short-Term Investments: These increased substantially from $661 million to $1 billion, indicating stronger short-term asset positioning.
• Expanding Total Assets: Total assets increased from $6.87 billion in 2023 to $7.93 billion in 2024, showcasing growth in the company’s asset base.
• Significant Growth in Common Equity: Total common equity climbed from around $4.05 billion to $5.29 billion, signaling improved shareholder value and retained earnings growth.
• Increased Retained Earnings: Retained earnings increased notably from $2.46 billion to $2.75 billion, highlighting accumulated profitability.
• Rise in Goodwill and Intangible Assets: Goodwill slightly increased to $1.63 billion and intangible assets grew from $138 million to $152 million, reflecting recent acquisitions or investments in intellectual property.
• Accounts Receivable Decline: Accounts receivable decreased from $999 million in 2023 to $781 million in 2024; this could reflect faster collections or declining sales.
• Shift in Other Current Assets: Other current assets increased significantly from $154 million to $336 million, which may indicate changes in prepayments or other receivables.
• Increase in Total Liabilities: Total liabilities decreased from $2.82 billion to $2.63 billion, which is positive; however, current deferred revenue dropped sharply from $293 million to $198 million, potentially impacting future revenue recognition.
• Decrease in Current Employee Benefit Liabilities: This liability decreased from $589 million to $298 million, which might reflect restructuring but could also indicate reduced employee-related obligations.

Overall, the balance sheet shows ARM has strengthened its equity base and liquidity over the last year while managing liabilities effectively. The growth in cash, investments, and equity indicates solid financial health and capacity for future investments or shareholder returns. However, the changes in deferred revenue and receivables warrant monitoring as they affect short-term cash flow and revenue streams.