Ares Dynamic Credit Allocation FundARDC +0.31%43 Return-on-Tangible-Equity is 5.92% as of Dec. 2025, which is 9% below its 10-year median of 6.48. 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 1,588 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks worse than 52.52% on this metric.
The historical rank and industry rank for Ares Dynamic Credit Allocation Fund's Return-on-Tangible-Equity or its related term are showing as below:
ARDC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -13.42 Med: 6.48 Max: 17.64
Current: 6.46
During the past 9 years, Ares Dynamic Credit Allocation Fund's highest Return-on-Tangible-Equity was 17.64%. The lowest was -13.42%. And the median was 6.48%.
ARDC's Return-on-Tangible-Equity is ranked worse than 52.52% of 1588
companies
in the Asset Management industry
Industry Median: 7.19
vs ARDC: 6.46
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ares Dynamic Credit Allocation Fund Return-on-Tangible-Equity Related Terms
Ares Dynamic Credit Allocation Fund Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
ARDC vs KWY, HRZN, KF: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.92% mean?
Ares Dynamic Credit Allocation Fund (ARDC) has a Return-on-Tangible-Equity of 5.92% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. This is near median its historical median of 6.48. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #834 out of 1588 companies in the Asset Management industry, placing it in the top 52.5%.
Is Ares Dynamic Credit Allocation Fund's Return-on-Tangible-Equity too high?
Ares Dynamic Credit Allocation Fund's current Return-on-Tangible-Equity of 5.92% is near median its 10-year median of 6.48. The Asset Management industry median Return-on-Tangible-Equity is 7.19. Ares Dynamic Credit Allocation Fund's value of 5.92% is 17.7% below this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #834 out of 1588 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 Return-on-Tangible-Equity compare to KWY and HRZN?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #834 out of 1588 companies for Return-on-Tangible-Equity. This places Ares Dynamic Credit Allocation Fund in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.19. Ares Dynamic Credit Allocation Fund's value of 5.92% is 17.7% below this benchmark. While the company's 10-year median is 6.48 vs. the industry median of 7.19, 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 Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.19, based on 1,588 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Dynamic Credit Allocation Fund's current Return-on-Tangible-Equity of 5.92% is 17.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current Return-on-Tangible-Equity is 5.92%, which is near median its own 10-year median of 6.48. 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 $12.77 — trading 47.5% above its estimated fair value. The current Return-on-Tangible-Equity is 5.92%, which is near median its 10-year median of 6.48 and 17.7% below the Asset Management industry median of 7.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current Return-on-Tangible-Equity is 5.92% 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 $12.77 is trading 47.5% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
Return-on-Tangible-Equity: 5.92% (near median its 10-year median of 6.48)
GF Value™: $8.66 vs. price of $12.77 (47.5% above fair value)
Industry Position: 17.7% below the Asset Management median (#834 of 1588)
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
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