What is Ares Dynamic Credit Allocation Fund Pretax Margin %?
Ares Dynamic Credit Allocation FundARDC +0.06%43 Pretax Margin % is 86.09% as of Dec. 2025, which is 7% below its 10-year median of 92.19. GuruFocus rates ARDC with a GF Score™ of 43/100 and a GF Value™ of $8.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,576 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks worse than 51.84% on this metric.
ARDC'
s Pretax Margin % Range Over the Past 10 Years
Min: 65.68 Med: 92.19 Max: 106.18
Current: 87.51
ARDC's Pretax Margin % is ranked worse than 51.84% of 1576
companies
in the Asset Management industry
Industry Median: 89.475
vs ARDC: 87.51
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Ares Dynamic Credit Allocation Fund Pretax Margin % Related Terms
Ares Dynamic Credit Allocation Fund Pretax Margin % Historical 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.
Ares Dynamic Credit Allocation Fund Pretax Margin % Chart
ARDC vs FUND, NCA, NBH: Pretax Margin % Comparison
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Dynamic Credit Allocation Fund Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's Pretax Margin % falls into.
* 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 Dynamic Credit Allocation Fund (ARDC) has a Pretax Margin % of 86.09% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. This is near median its historical median of 92.19. Over the past decade, Ares Dynamic Credit Allocation Fund's Pretax Margin % has ranged from 65.68 to 106.18. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #817 out of 1576 companies in the Asset Management industry, placing it in the top 51.8%.
Is Ares Dynamic Credit Allocation Fund's Pretax Margin % too high?
Ares Dynamic Credit Allocation Fund's current Pretax Margin % of 86.09% is near median its 10-year median of 92.19. Over the past 10 years, this metric has ranged from a low of 65.68 to a high of 106.18. The Asset Management industry median Pretax Margin % is 89.48. Ares Dynamic Credit Allocation Fund's value of 86.09% is 3.8% below this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #817 out of 1576 companies in the Asset Management industry, which is below the industry midpoint. Overall, Ares Dynamic Credit Allocation Fund has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Dynamic Credit Allocation Fund's Pretax Margin % compare to FUND and NCA?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #817 out of 1576 companies for Pretax Margin %. This places Ares Dynamic Credit Allocation Fund in the lower half of its industry. The industry median Pretax Margin % is 89.48. Ares Dynamic Credit Allocation Fund's value of 86.09% is 3.8% below this benchmark. Historically, Ares Dynamic Credit Allocation Fund's own Pretax Margin % has ranged from 65.68 to 106.18 over the past decade. While the company's 10-year median is 92.19 vs. the industry median of 89.48, Ares Dynamic Credit Allocation Fund has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Asset Management company?
The median Pretax Margin % among Asset Management companies is 89.48, based on 1,576 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Dynamic Credit Allocation Fund's current Pretax Margin % of 86.09% is 3.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median Pretax Margin % is 89.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current Pretax Margin % is 86.09%, which is near median its own 10-year median of 92.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Dynamic Credit Allocation Fund stock overvalued right now?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund (ARDC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.66, compared to a current price of $12.56 — trading 45% above its estimated fair value. The current Pretax Margin % is 86.09%, which is near median its 10-year median of 92.19 and 3.8% below the Asset Management industry median of 89.48. Ares Dynamic Credit Allocation Fund's overall GF Score™ is 43/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current Pretax Margin % is 86.09% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Dynamic Credit Allocation Fund (ARDC) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund stock appears to be overvalued.
The current stock price of $12.56 is trading 45% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
Pretax Margin %: 86.09% (near median its 10-year median of 92.19)
GF Value™: $8.66 vs. price of $12.56 (45% above fair value)
Industry Position: 3.8% below the Asset Management median (#817 of 1576)
No single metric tells the full story. See the ARDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Dynamic Credit Allocation Fund Business Description
Ares Dynamic Credit Allocation Fund Inc is a closed-end, diversified, management investment company. The Fund's investment objective is to seek an attractive risk adjusted level of total return, through current income and, secondarily, through capital appreciation. The Fund invests in a broad, dynamically managed portfolio of (i) senior secured loans, (ii) corporate bonds, (iii) other fixed-income instruments, and (iv) securities issued by entities commonly referred to as collateralized loan obligations and other asset-backed securities.
43GF Score
Get the complete analysis for ARDC
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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