Is ARM HOLDINGS PLC /UK (ARM) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.3% / 30% | 2.3% / 30% | 1.6% / 30% | 2.89% / 5% | ✓ HALAL |
| DJIM | 0.3% / 33% | 2.3% / 33% | 1.6% / 33% | 2.89% / 5% | ✓ HALAL |
| MSCI | 4.0% / 33% | 31.6% / 33% | 21.2% / 33% | 2.89% / 5% | ✓ HALAL |
| S&P | 0.3% / 33% | 2.3% / 33% | 1.6% / 33% | 2.89% / 5% | ✓ HALAL |
| FTSE | 4.0% / 33% | 31.6% / 33% | 21.2% / 50% | 2.89% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 97.5% | |
| Operating Margin | 15.4% | |
| Net Margin | 17.1% | |
| Return on Equity (ROE) | 11.3% | |
| Return on Assets (ROA) | 5.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $397M |
| Free Cash Flow | $158M |
| Total Debt | $356M |
| Debt-to-Equity | 5.9 |
| Current Ratio | 5.4 |
| Total Assets | $8.9B |
Price & Trading
| Last Close | $154.80 |
| 50-Day MA | $122.07 |
| 200-Day MA | $138.41 |
| Avg Volume | 5.8M |
| Beta | 4.1 |
|
52-Week Range
$80.00
| |
About ARM HOLDINGS PLC /UK (ARM)
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. The company is involved in the licensing, marketing, research, and development of microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. It also offers arm central processing units, accelerators, system IP products, and compute platform products, as well as development tools and software. The company's products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. It operates in the United States, the People's Republic of China, Taiwan, the Republic of Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc is a subsidiary of SoftBank Group Corp.
Purification Calculator
As a halal stock with 2.89% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ARM HOLDINGS PLC /UK (ARM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ARM HOLDINGS PLC /UK is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ARM HOLDINGS PLC /UK's debt ratio?
ARM HOLDINGS PLC /UK's debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 4.0%.
Does ARM HOLDINGS PLC /UK require dividend purification?
Yes, ARM HOLDINGS PLC /UK has an impermissible income ratio of 2.89%, which means 2.89% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ARM HOLDINGS PLC /UK's key financial metrics?
ARM HOLDINGS PLC /UK has a market capitalization of $153.1B, trailing P/E ratio of 192.2, and revenue of $4.0B. The company maintains a gross margin of 97.5% and a net margin of 17.1%. Return on equity stands at 11.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.