What is Ares Capital Financial Strength?
Ares Capital has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Ares Capital Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
GuruFocus does not calculate Ares Capital's interest coverage with the available data.
Ares Capital's debt to revenue ratio for the quarter that ended in Dec. 2023 was 6.72.
Altman Z-Score does not apply to banks and insurance companies.
Ares Capital Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Ares Capital's Interest Expense for the
months ended in Dec. 2023 was $-144 Mil. Its Operating Income for the
months ended in Dec. 2023 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $11,935 Mil.
Ares Capital's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Ares Capital's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Capital (Ares Capital) Business Description
Traded in Other Exchanges
Address
245 Park Avenue, 44th Floor, New York, NY, USA, 10167
Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing primarily in U.S. middle-market companies with investment opportunities as well as in larger companies. Its portfolio comprises of first lien senior secured loans, second lien senior secured loans, and mezzanine debt (subordinated unsecured loan), which may include equity components that are diversified by industry and sector. The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.
Executives
| Michael Kort Schnabel |
officer: Co-President |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Penelope F Roll |
officer: Chief Financial Officer |
|
| Jana Markowicz |
officer: Chief Operating Officer |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Mary Beth Henson |
director |
130 EAST 75TH STREET, APT 7C, NEW YORK NY 10021 |
| Steven B. Mckeever |
director |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Michael J Arougheti |
officer: President |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Michael Lewis Smith |
officer: Executive Vice President |
245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167 |
| Joshua M Bloomstein |
officer: Gen. Counsel, VP & Asst. Secr. |
C/O ARES MANAGEMENT LLC, 280 PARK AVENUE, 22ND FL EAST, NEW YORK NY 10017 |
| R. Kipp Deveer |
officer: President |
245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167 |
| Eric B Siegel |
director |
123 W MILLS, EL PASO TX 79901 |
| Michael K Parks |
director |
123 W MILLS, EL PASO TX 79901 |
| Robert L Rosen |
director |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Steve Bartlett |
director |
7711 CARONDELET AVE, SUITE 800, ST LOUIS MO 63105 |
| Kelly Daniel G Jr |
director |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Bates Ann Torre |
director |
300 CONTINENTAL DRIVE, NEWARK DE 19713 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ARCC has been successfully added to your