GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Ares Commercial Real Estate Corp (NYSE:ACRE) » Definitions » Asset Turnover

Ares Commercial Real Estate (Ares Commercial Real Estate) Asset Turnover : 0.01 (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is Ares Commercial Real Estate Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Ares Commercial Real Estate's Revenue for the three months ended in Dec. 2023 was $16.56 Mil. Ares Commercial Real Estate's Total Assets for the quarter that ended in Dec. 2023 was $2,321.48 Mil. Therefore, Ares Commercial Real Estate's Asset Turnover for the quarter that ended in Dec. 2023 was 0.01.

Asset Turnover is linked to ROE % through Du Pont Formula. Ares Commercial Real Estate's annualized ROE % for the quarter that ended in Dec. 2023 was -24.09%. It is also linked to ROA % through Du Pont Formula. Ares Commercial Real Estate's annualized ROA % for the quarter that ended in Dec. 2023 was -6.79%.


Ares Commercial Real Estate Asset Turnover Historical Data

The historical data trend for Ares Commercial Real Estate's Asset Turnover can be seen below:

* 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.

* Premium members only.

Ares Commercial Real Estate Asset Turnover Chart

Ares Commercial Real Estate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.05 0.04 0.05 0.04 0.03

Ares Commercial Real Estate Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.01 0.01 0.01 0.01 0.01

Competitive Comparison of Ares Commercial Real Estate's Asset Turnover

For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ares Commercial Real Estate's Asset Turnover Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's Asset Turnover falls into.



Ares Commercial Real Estate Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Ares Commercial Real Estate's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=81.432/( (2523.002+2279.777)/ 2 )
=81.432/2401.3895
=0.03

Ares Commercial Real Estate's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=16.557/( (2363.176+2279.777)/ 2 )
=16.557/2321.4765
=0.01

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Ares Commercial Real Estate  (NYSE:ACRE) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Ares Commercial Real Estate's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-157.652/654.4035
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-157.652 / 66.228)*(66.228 / 2321.4765)*(2321.4765/ 654.4035)
=Net Margin %*Asset Turnover*Equity Multiplier
=-238.04 %*0.0285*3.5475
=ROA %*Equity Multiplier
=-6.79 %*3.5475
=-24.09 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Ares Commercial Real Estate's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-157.652/2321.4765
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-157.652 / 66.228)*(66.228 / 2321.4765)
=Net Margin %*Asset Turnover
=-238.04 %*0.0285
=-6.79 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* 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.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Ares Commercial Real Estate Asset Turnover Related Terms

Thank you for viewing the detailed overview of Ares Commercial Real Estate's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Ares Commercial Real Estate (Ares Commercial Real Estate) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. The company operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
Executives
Bryan Patrick Donohoe officer: Chief Executive Officer C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Anton Feingold officer: General Counsel VP & Secretary C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
William Stephen Benjamin director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Rebecca Jaisali Parekh director C/O ARES COMMERCIAL REAL ESTATE, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Michael J Arougheti director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
James Alan Henderson officer: President and CIO C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
David A Roth officer: President C/O THE BLACKSTONE GROUP, 345 PARK AVE., NEW YORK NY 10154
Rand Scott April director C/O ARES COMMERCIAL REAL ESTATE MGMT, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Moriarty Edmond N. Iii director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Kirk Sykes director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Robert L Rosen director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
James E Skinner director NEIMAN MARCUS GROUP, 1618 MAIN ST, DALLAS TX 75201
Caroline Blakely director ONE NORTH WACKER DRIVE 48TH FL, CHICAGO IL 60606
John Jardine director, officer: Co-Chief Executive Officer C/O ARES COMMERCIAL REAL ESTATE CORP., ONE NORTH WACKER DRIVE, 48TH FLOOR, CHICAGO IL 60606
Todd Schuster director C/O TPG RE FINANCE TRUST, INC., 888 SEVENTH AVENUE, 35TH FLOOR, NEW YORK NY 10106

Ares Commercial Real Estate (Ares Commercial Real Estate) Headlines