Explain this page
Arphra AIPlain-English read on Ares Capital Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | $13.66B | $14.14B | — | — | — |
| Enterprise value | — | — | — | $26.78B | $29.21B | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 11.32 | 9.29 | — | — | — |
| EV / FCF | — | — | — | 20.89 | 25.58 | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | +11.14% | +9.19% | — | — | — |
| Free cash flow yield | — | — | — | +9.39% | +8.08% | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +81.85% | +61.96% | +75.53% | +72.16% | +75.68% | +72.61% | +75.42% | +72.38% |
| Operating margin | +77.85% | +54.77% | +71.19% | +67.38% | +69.67% | +70.51% | +71.13% | +67.97% |
| EBITDA margin | +77.85% | +54.77% | +71.19% | +67.38% | +69.67% | +70.05% | +68.96% | +70.73% |
| EBIT margin | +77.85% | +54.77% | +71.19% | +67.38% | +69.67% | +71.47% | +70.61% | +70.79% |
| Pre-tax margin | +77.85% | +54.77% | +71.19% | +67.38% | +44.45% | +62.61% | +60.17% | +62.82% |
| Net margin | +76.44% | +50.17% | +70.27% | +64.30% | +41.30% | +59.06% | +59.46% | +57.20% |
| Cost structure | ||||||||
| Cost of revenue / sales | +18.15% | +38.04% | +24.47% | +27.84% | +24.32% | +25.01% | +25.49% | +26.14% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +1.90% | +3.18% | +1.94% | +1.82% | 0.00% | +1.25% | +1.25% | +1.22% |
| Effective tax rate | +1.82% | +8.40% | +1.30% | +4.58% | +7.08% | +4.24% | +4.29% | +4.15% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +17.67% | +6.28% | +13.59% | +11.40% | +9.07% | +11.81% | +11.67% | +11.02% |
| Return on assets (ROA) | +7.52% | +2.68% | +6.39% | +5.39% | +4.16% | +5.38% | +5.43% | +5.25% |
| Return on capital (ROC) | +7.97% | +2.99% | +6.66% | +5.88% | +7.23% | +6.67% | +6.77% | +6.32% |
| Return on invested capital (ROIC) | +7.83% | +2.74% | +6.57% | +5.61% | +4.29% | +5.59% | +5.66% | +5.32% |
| Asset turnover | +9.84% | +5.34% | +9.10% | +8.38% | +10.07% | +9.10% | +9.14% | +9.18% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +76.44% | +50.17% | +70.27% | +64.30% | +41.30% | +59.06% | +59.46% | +57.20% |
| Asset turnover (× revenue / assets) | +9.84% | +5.34% | +9.10% | +8.38% | +10.07% | +9.10% | +9.14% | +9.18% |
| Equity multiplier (× assets / equity) | +235.04% | +234.41% | +212.48% | +211.56% | +218.15% | +219.59% | +214.73% | +209.69% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.10 | 0.05 | 0.09 | 0.08 | 0.10 | 0.09 | 0.09 | 0.09 |
| Fixed-asset turnover | 75.93 | 59.80 | — | — | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — |
| Receivables turnover | 9.23 | 6.64 | 8.30 | 4.59 | 5.20 | — | — | — |
| Payables turnover | 1.21 | 5.23 | 4.61 | 1.62 | 8.90 | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 39.53 | 54.93 | 43.98 | 79.57 | 70.21 | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 301.22 | 69.79 | 79.20 | 224.87 | 41.03 | — | — | — |
| Cash conversion cycle | -261.70 | -14.86 | -35.22 | -145.30 | 29.18 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.60 | 1.24 | 0.66 | 0.84 | -1.32 | 0.26 | 0.26 | 0.27 |
| FCF / Net income | 0.60 | 1.24 | 0.66 | 0.84 | -1.32 | 0.26 | 0.26 | 0.27 |
| FCF margin | +45.61% | +62.37% | +46.17% | +54.16% | -54.59% | +15.17% | +15.61% | +15.20% |
| OCF margin | +45.61% | +62.37% | +46.17% | +54.16% | -54.59% | +15.49% | +15.57% | +15.45% |
| CapEx / Revenue | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| CapEx / D&A | — | — | — | — | — | — | — | — |
| Stock-based comp / Revenue | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 3.51 | 1.19 | 2.68 | 2.44 | 1.86 | 1.91 | 1.93 | 1.87 |
| EPS · basic | 3.51 | 1.21 | 2.75 | 2.44 | 1.86 | 1.92 | 1.93 | 1.89 |
| Book value / share | 19.88 | 18.45 | 19.48 | 21.40 | 20.48 | 22.27 | 23.48 | 22.89 |
| Tangible BV / share | 19.88 | 18.45 | 19.48 | 21.40 | 20.48 | 22.27 | 23.48 | 22.89 |
| Sales / share | 4.60 | 2.31 | 3.77 | 3.79 | 4.50 | 4.45 | 4.61 | 4.41 |
| Operating CF / share | 2.10 | 1.44 | 1.74 | 2.05 | -2.46 | 0.69 | 0.72 | 0.68 |
| Free cash flow / share | 2.10 | 1.44 | 1.74 | 2.05 | -2.46 | 0.68 | 0.72 | 0.67 |
| Dividends / share | 1.56 | 1.76 | 1.79 | 1.83 | 1.81 | 1.97 | 2.07 | 1.99 |
| Payout ratio | +44.29% | +152.00% | +67.74% | +74.84% | +97.31% | +75.03% | +75.64% | +78.93% |
| Retention ratio | +55.71% | -52.00% | +32.26% | +25.16% | +2.69% | +24.97% | +24.36% | +21.07% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | -41.66% | +81.10% | +9.28% | +32.87% | -1.18% | +3.09% | -3.78% | +6.00% |
| Gross profit · YoY | — | -55.84% | +120.78% | +4.40% | +39.34% | -5.19% | +7.08% | -7.66% | +4.16% |
| Profit | |||||||||
| Operating income · YoY | — | -58.96% | +135.42% | +3.44% | +37.37% | +0.02% | +3.99% | -8.06% | +3.96% |
| EBITDA · YoY | — | -58.96% | +135.42% | +3.44% | +37.37% | -0.63% | +1.49% | -1.32% | +4.56% |
| Net income · YoY | — | -61.71% | +153.67% | 0.00% | -14.65% | +41.29% | +3.80% | -7.44% | +1.70% |
| Operating | |||||||||
| EBIT · YoY | — | -58.96% | +135.42% | +3.44% | +37.37% | +1.39% | +1.84% | -3.53% | +4.57% |
| R&D · YoY | — | — | — | — | — | — | — | — | — |
| Per-share | |||||||||
| EPS · diluted · YoY | — | -66.10% | +125.21% | -8.96% | -23.77% | +2.89% | +0.62% | -2.88% | -8.60% |
| EPS · basic · YoY | — | -65.53% | +127.27% | -11.27% | -23.77% | +3.16% | +0.49% | -2.23% | -8.50% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $11.16B | $12.38B | $11.95B | $13.76B | $15.99B | $17.3B | $17.36B | $17.16B |
| Net debt | $10.79B | $12.07B | $11.42B | $13.12B | $15.07B | $16.44B | $16.48B | $16.34B |
| Net debt / EBITDA | 6.76 | 18.43 | 7.40 | 8.23 | 6.88 | 7.55 | 7.46 | 7.49 |
| Debt / equity | 1.26 | 1.30 | 1.07 | 1.03 | 1.12 | 1.11 | 1.06 | 1.07 |
| Debt / assets | +53.53% | +55.26% | +50.21% | +48.70% | +51.20% | +50.68% | +49.53% | +51.12% |
| Equity / assets | +42.55% | +42.66% | +47.06% | +47.27% | +45.84% | +45.54% | +46.57% | +47.69% |
| Coverage | ||||||||
| EBITDA / interest expense | 4.29 | 1.44 | 2.91 | 2.42 | 3.40 | 2.87 | 2.87 | 2.89 |
| Operating income / interest | 4.29 | 1.44 | 2.91 | 2.42 | 3.40 | 2.89 | 2.96 | 2.78 |
| Interest expense | $372M | $455M | $530M | $659M | $645.2M | $757.98M | $769.67M | $754.44M |
| Liquidity | ||||||||
| Current ratio | 0.98 | 0.42 | 0.44 | 2.83 | 1.71 | — | — | — |
| Quick ratio | 0.82 | 0.40 | 0.43 | 2.83 | 1.71 | — | — | — |
| Cash ratio | 0.51 | 0.25 | 0.29 | 1.56 | 1.03 | — | — | — |
| Working capital | -$16M | -$700M | -$1.04B | $745M | $635M | — | — | — |
| Working capital / revenue | -0.78% | -58.53% | -48.06% | +31.47% | +20.19% | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 9.29x | 11.32x |
| Earnings yield | 9.2% | 11.1% |
| FCF yield | 8.1% | 9.4% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 9.1% | 11.4% |
| ROA | 4.2% | 5.4% |
| ROIC | 6.7% | 5.5% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 6.88 | 8.23 |
| Interest coverage | — | — |
| Current ratio | 1.71x | 2.83x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).