Market Cap : 10.06 B | Enterprise Value : 21.7 B | PE Ratio : 9.02 | PB Ratio : 1.06 |
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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.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 Jun. 2022 was 15.92. Altman Z-Score does not apply to banks and insurance companies.
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 Jun. 2022 was $-101 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $11,843 Mil.
Ares Capital's Interest Coverage for the quarter that ended in Jun. 2022 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 Jun. 2022 is
Debt to Revenue Ratio | = | Total Debt (Q: Jun. 2022 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (0 | + | 11843) | / | 744 | |
= | 15.92 |
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.
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
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.
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Henson Mary Beth | director | 130 EAST 75TH STREET APT 7C NEW YORK NY 10021 |
Parks Michael K | director | 123 W MILLS EL PASO TX 79901 |
Kelly Daniel G Jr | director | 2000 AVENUE OF THE STARS, 12TH FLOOR LOS ANGELES CA 90067 |
Lem Scott C | officer: CAO, VP & Treasurer | 2000 AVENUE OF THE STARS, 12TH FLOOR LOS ANGELES CA 90067 |
Beckman Eric B | officer: Executive Vice President | 2000 AVENUE OF THE STARS 12TH FLOOR LOS ANGELES CA 90067 |
Goldstein Mitchell S | officer: Executive Vice President | 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167 |
Deveer R. Kipp | officer: President | 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167 |
Smith Michael Lewis | officer: Executive Vice President | 245 PARK AVENUE 44TH FLOOR NEW YORK NY 10167 |
Bartlett Steve | director | 7711 CARONDELET AVE SUITE 800 ST LOUIS MO 63105 |
Mckeever Steven B. | director | 2000 AVENUE OF THE STARS 12TH FLOOR LOS ANGELES CA 90067 |
Heitz Kenneth | director | 123 W MILLS EL PASO TX 79901 |
Roll Penelope F | officer: Chief Financial Officer | |
Torre Bates Ann | director | 300 CONTINENTAL DRIVE NEWARK DE 19713 |
Bloomstein Joshua M | officer: Gen. Counsel, VP & Asst. Secr. | C/O ARES MANAGEMENT LLC 280 PARK AVENUE, 22ND FL EAST NEW YORK NY 10017 |
Penske Gregory W | director | 3534 NORTH PECK ROAD EL MONTE CA 91731 |