ARDC's ROE % is ranked better than 50.28% of 1615
companies
in the Asset Management industry
Industry Median: 6.35
vs ARDC: 6.46
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Ares Dynamic Credit Allocation Fund ROE % Related Terms
Ares Dynamic Credit Allocation Fund ROE % 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.
For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's ROE % distribution charts can be found below:
* The bar in red indicates where Ares Dynamic Credit Allocation Fund's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Ares Dynamic Credit Allocation Fund (ARDC) has a ROE % of 5.92% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total 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 #803 out of 1615 companies in the Asset Management industry, placing it in the top 49.7%.
Is Ares Dynamic Credit Allocation Fund's ROE % too high?
Ares Dynamic Credit Allocation Fund's current ROE % of 5.92% is near median its 10-year median of 6.48. The Asset Management industry median ROE % is 6.35. Ares Dynamic Credit Allocation Fund's value of 5.92% is 6.8% below this industry median. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #803 out of 1615 companies in the Asset Management industry, which is above 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 ROE % compare to FUND and NCA?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #803 out of 1615 companies for ROE %. This puts Ares Dynamic Credit Allocation Fund in the upper half of its industry. The industry median ROE % is 6.35. Ares Dynamic Credit Allocation Fund's value of 5.92% is 6.8% below this benchmark. While the company's 10-year median is 6.48 vs. the industry median of 6.35, 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.35, based on 1,615 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Dynamic Credit Allocation Fund's current ROE % of 5.92% is 6.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ares Dynamic Credit Allocation Fund and its competitors. For the Asset Management industry, the median ROE % is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Dynamic Credit Allocation Fund's current ROE % 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 $12.55 — trading 44.9% above its estimated fair value. The current ROE % is 5.92%, which is near median its 10-year median of 6.48 and 6.8% below the Asset Management industry median of 6.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current ROE % 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 $12.55 is trading 44.9% above its estimated GF Value™ of $8.66.
GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.
Key valuation signals for ARDC:
ROE %: 5.92% (near median its 10-year median of 6.48)
GF Value™: $8.66 vs. price of $12.55 (44.9% above fair value)
Industry Position: 6.8% below the Asset Management median (#803 of 1615)
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
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ARDC has been successfully added to your 
