ARM equity , debt and subsidiaries

Accuracy score :
97%

ARM Holdings PLC ADR- ARMH

Summary (from latest annual report – 2014)

  • Total equity  : 1.52 billion GBP 
  • Market Cap is 23.74 billion USD ( last price of the stock is 50.77 USD)
  • ARM is the world’s leading semiconductor IP company
  • The company operates through the following divisions: Processor, Physical IP and System Design
  • Today ARM technology is in use in 95% of smart phones, 80% of digital cameras, and 35% of all electronic devices
  • Equity of total company increased from 1.31 billion in 2013 to 1.52 billion in 2014 (In GBP, annual report of the company is in GBP) - very positive thing
  • Company has 54 million GBP in cash on account
  • Total equity – cash on account = 1.52 billion – 54 million = 1.466 billion GBP
  • In 2014 company has only 6.5 million GBP  total debt, short-term debt was zero (In 2013 company has 4.2million GBP total debt, debt of this company is very low, and this is excellent)
  • ARM’s balance sheet has become stronger in 2015 (In latest quarterly report - total equity increased to 1.69 billion GBP, company has 79.10 million GBP cash on account and total debt is 8.7 million GBP )
  • Company's sales increased in 2014 to 795 million GPB from 715 million in 2013
  • Net income increased in 2014 to 321 million GPB from 255 million in 2013 (excellent numbers)
  • Cash flow from operations increased  at 342 million GBP in 2014, from 315 million in 2013
  • The Board has recommended an increase in the full year dividend for 2014 of 23% and, during the year, approved the buyback of 7.9 million shares, demonstrating the Board’s confidence in ARM’s long-term growth opportunities
  • ARM’s business model is highly cash generative. Since the beginning of 2010, ARM has paid out 283.3 million GBP in dividends, and their net cash balance has grown from 141.8 million to 861.7 million GBP at the end of 2014
  • In 2014, ARM spent 12.6 million GBP on two acquisitions. The larger of these was Duolog, a leader in design configuration and integration technology, the smaller one is Offspark
  • In 2013, ARM spent a total of 20.0 million GBP on two acquisitions: Sensinode and Geomerics

 

Opinion about the company

Fundamentally ARM is excellent  company and in the future we can expect its growth (Very low total debt (At the end of 2014 total debt was 6.5 million GBP, and currently is 8.7 million GBP) , ROE is around 20 %).