Ares Capital Gross Profit vs. EBITDA
| ARCC Stock | USD 22.08 0.19 0.85% |
Gross Profit | First Reported 2004-12-31 | Previous Quarter 593 M | Current Value 553 M | Quarterly Volatility 164.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.65 | 0.8293 |
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| Net Profit Margin | 0.55 | 0.73 |
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| Operating Profit Margin | 0.74 | 0.8959 |
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| Pretax Profit Margin | 0.68 | 0.7396 |
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| Return On Assets | 0.0331 | 0.0639 |
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| Return On Equity | 0.14 | 0.1359 |
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For Ares Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ares Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ares Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ares Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ares Capital over time as well as its relative position and ranking within its peers.
Ares |
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Capital. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Dividend Share 1.92 | Earnings Share 2.6 | Revenue Per Share 4.868 | Quarterly Revenue Growth 0.183 |
The market value of Ares Capital is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Capital's value that differs from its market value or its book value, called intrinsic value, which is Ares Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Capital's market value can be influenced by many factors that don't directly affect Ares Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ares Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ares Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ares Capital EBITDA vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ares Capital's current stock value. Our valuation model uses many indicators to compare Ares Capital value to that of its competitors to determine the firm's financial worth. Ares Capital is number one stock in gross profit category among its peers. It is rated second in ebitda category among its peers totaling about 0.61 of EBITDA per Gross Profit. The ratio of Gross Profit to EBITDA for Ares Capital is roughly 1.63 . At present, Ares Capital's Gross Profit is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ares Capital's earnings, one of the primary drivers of an investment's value.Ares EBITDA vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Ares Capital |
| = | 2.1 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Ares Capital |
| = | 1.29 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Ares EBITDA Comparison
Ares Capital is currently under evaluation in ebitda category among its peers.
Ares Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ares Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ares Capital will eventually generate negative long term returns. The profitability progress is the general direction of Ares Capital's change in net profit over the period of time. It can combine multiple indicators of Ares Capital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 11.2 B | 11.8 B | |
| Operating Income | 1.3 B | 646.6 M | |
| Income Before Tax | 1.3 B | 1.4 B | |
| Total Other Income Expense Net | 256 M | 268.8 M | |
| Net Income | 1.5 B | 1.6 B | |
| Income Tax Expense | 20 M | 14.7 M | |
| Net Income Applicable To Common Shares | 690 M | 571.1 M | |
| Net Income From Continuing Ops | 1.3 B | 1 B | |
| Interest Income | 1.9 B | 1.2 B | |
| Net Interest Income | 1.4 B | 989.9 M | |
| Non Operating Income Net Other | -2.7 M | -2.8 M | |
| Change To Netincome | 70.2 M | 73.7 M | |
| Net Income Per Share | 2.75 | 2.88 | |
| Income Quality | 0.34 | 0.35 | |
| Net Income Per E B T | 0.99 | 1.04 |
Ares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ares Capital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ares Capital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ares Capital's important profitability drivers and their relationship over time.
Use Ares Capital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ares Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ares Capital will appreciate offsetting losses from the drop in the long position's value.Ares Capital Pair Trading
Ares Capital Pair Trading Analysis
The ability to find closely correlated positions to Ares Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ares Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ares Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ares Capital to buy it.
The correlation of Ares Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ares Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ares Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ares Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ares Capital position
In addition to having Ares Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Cleaning
Compnanies producing and distributing cleaning products, supplies, and accessories. The Cleaning theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cleaning Theme or any other thematic opportunities.
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Check out Trending Equities. For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Ares Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ares Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ares Capital's income statement, its balance sheet, and the statement of cash flows.