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ARES (Ares Management) Piotroski F-Score : 6 (As of Mar. 19, 2025)


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What is Ares Management Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ares Management has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Ares Management's Piotroski F-Score or its related term are showing as below:

ARES' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 6
Current: 6

During the past 13 years, the highest Piotroski F-Score of Ares Management was 6. The lowest was 2. And the median was 5.


Ares Management Piotroski F-Score Historical Data

The historical data trend for Ares Management's Piotroski F-Score 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 Management Piotroski F-Score Chart

Ares Management Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.00 6.00 4.00 5.00 6.00

Ares Management Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score 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 5.00 5.00 6.00 5.00 6.00

Competitive Comparison of Ares Management's Piotroski F-Score

For the Asset Management subindustry, Ares Management's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Management's Piotroski F-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Ares Management's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ares Management's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 73.027 + 94.938 + 118.46 + 177.317 = $464 Mil.
Cash Flow from Operations was 710.045 + 432.172 + 841.319 + 807.618 = $2,791 Mil.
Revenue was 1014.961 + 1137.92 + 1431.73 + 1607.106 = $5,192 Mil.
Gross Profit was 602.01 + 718.062 + 995.854 + 1144.044 = $3,460 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(24730.5 + 24413.27 + 24192.557 + 24522.65 + 24884.308) / 5 = $24548.657 Mil.
Total Assets at the begining of this year (Dec23) was $24,731 Mil.
Long-Term Debt & Capital Lease Obligation was $12,873 Mil.
Total Current Assets was $4,246 Mil.
Total Current Liabilities was $4,332 Mil.
Net Income was 94.039 + 144.514 + 61.823 + 173.95 = $474 Mil.

Revenue was 1052.354 + 1434.337 + 1009.428 + 1490.859 = $4,987 Mil.
Gross Profit was 691.573 + 1066.787 + 641.926 + 1099.994 = $3,500 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(22002.839 + 21928.582 + 23118.806 + 23383.893 + 24730.5) / 5 = $23032.924 Mil.
Total Assets at the begining of last year (Dec22) was $22,003 Mil.
Long-Term Debt & Capital Lease Obligation was $15,631 Mil.
Total Current Assets was $2,771 Mil.
Total Current Liabilities was $3,791 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ares Management's current Net Income (TTM) was 464. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ares Management's current Cash Flow from Operations (TTM) was 2,791. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=463.742/24730.5
=0.01875182

ROA (Last Year)=Net Income/Total Assets (Dec22)
=474.326/22002.839
=0.02155749

Ares Management's return on assets of this year was 0.01875182. Ares Management's return on assets of last year was 0.02155749. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Ares Management's current Net Income (TTM) was 464. Ares Management's current Cash Flow from Operations (TTM) was 2,791. ==> 2,791 > 464 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=12872.967/24548.657
=0.52438579

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=15630.709/23032.924
=0.67862461

Ares Management's gearing of this year was 0.52438579. Ares Management's gearing of last year was 0.67862461. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=4246.259/4332.061
=0.98019372

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=2770.961/3791.183
=0.73089613

Ares Management's current ratio of this year was 0.98019372. Ares Management's current ratio of last year was 0.73089613. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Ares Management's number of shares in issue this year was 202.637. Ares Management's number of shares in issue last year was 234.82. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3459.97/5191.717
=0.66644041

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3500.28/4986.978
=0.70188399

Ares Management's gross margin of this year was 0.66644041. Ares Management's gross margin of last year was 0.70188399. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=5191.717/24730.5
=0.20993174

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=4986.978/22002.839
=0.22665157

Ares Management's asset turnover of this year was 0.20993174. Ares Management's asset turnover of last year was 0.22665157. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ares Management has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Ares Management  (NYSE:ARES) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Ares Management Piotroski F-Score Related Terms

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Ares Management Business Description

Traded in Other Exchanges
Address
2000 Avenue of the Stars, 12th Floor, Los Angeles, CA, USA, 90067
Ares Management Corp is an asset management company. It offers investors investment-related advice and strategies for capital growth. The company's operating segments include Credit Group, Private Equity Group, Real Assets and Secondaries Group. Its Credit Group generates maximum revenue, and manages credit strategies across the liquid and illiquid spectrum. Private Equity Group manages investment strategies categorized as corporate private equity, infrastructure and power, and special opportunities, Real Estate Group manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.
Executives
R. Kipp Deveer officer: Partner 245 PARK AVENUE, 44TH FLOOR, NEW YORK NY 10167
Ryan Berry officer: Ptr, Chief Mktg. & Strat. Off. C/O ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Michael J Arougheti director, officer: Co-Founder & President 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Bennett Rosenthal director, officer: Co-Founder & Senior Partner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
David B Kaplan director, officer: Co-Founder & Senior Partner 1999 AVENUE OF THE STARS, SUITE 1900, LOS ANGELES CA 90067
Judy D. Olian director 2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Antony P Ressler director, officer: Chairman, CEO, Co-Founder 1999 AVENUE OF THE STARS, SUITE 1900, LOS ANGELES CA 90067
Ashish Bhutani director
Aghili Naseem Sagati officer: General Counsel 2000 AVENUE OF THE STARS, LOS ANGELES CA 90067
Bush Antoinette Cook director NORTHPOINT TECHNOLOGY, 444 N CAPITOL STREET NW STE 645, WASHINGTON DC 20001
Eileen Naughton director C/O GOOGLE INC., 76 NINTH AVENUE, 4TH FLOOR, NEW YORK NY 10011
Ares Management Corp officer: Chief Financial Officer 2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Jarrod Phillips officer: Chief Financial Officer C/O ARES MANAGEMENT LLC, 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 100167
Michael R Mcferran officer: EVP, CFO & Treasurer 555 CALIFORNIA STREET, 50TH FLOOR, SAN FRANCISCO CA 94104
Michael D Weiner officer: EVP, CLO & Secretary 10250 CONSTELLATION BLVD, SUITE 2900, LOS ANGELES CA 90067-6229