Ares Capital Number Of Shares Shorted vs. Price To Sales

ARCC Stock  USD 22.21  0.04  0.18%   
Taking into consideration Ares Capital's profitability measurements, Ares Capital may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Ares Capital's ability to earn profits and add value for shareholders. At present, Ares Capital's Operating Cash Flow Sales Ratio is projected to increase significantly based on the last few years of reporting. At present, Ares Capital's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 268.8 M, whereas Operating Income is forecasted to decline to about 646.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.8293
Significantly Down
Pretty Stable
Net Profit Margin0.550.73
Way Down
Pretty Stable
Operating Profit Margin0.740.8959
Significantly Down
Very volatile
Pretax Profit Margin0.680.7396
Significantly Down
Slightly volatile
Return On Assets0.03310.0639
Way Down
Very volatile
Return On Equity0.140.1359
Fairly Up
Slightly volatile
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.
  
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For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.
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 Price To Sales vs. Number Of Shares Shorted 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 rated second in number of shares shorted category among its peers. It is rated below average in price to sales category among its peers . The ratio of Number Of Shares Shorted to Price To Sales for Ares Capital is about  3,192,981 . At present, Ares Capital's Price To Sales Ratio is projected to decrease 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 Price To Sales vs. Number Of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Ares Capital

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
15.59 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Ares Capital

P/S

 = 

MV Per Share

Revenue Per Share

 = 
4.88 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Ares Price To Sales Comparison

Ares Capital is currently under evaluation in price to sales 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income11.2 B11.8 B
Operating Income1.3 B646.6 M
Income Before Tax1.3 B1.4 B
Total Other Income Expense Net256 M268.8 M
Net Income1.5 B1.6 B
Income Tax Expense20 M14.7 M
Net Income Applicable To Common Shares690 M571.1 M
Net Income From Continuing Ops1.3 BB
Interest Income1.9 B1.2 B
Net Interest Income1.4 B989.9 M
Non Operating Income Net Other-2.7 M-2.8 M
Change To Netincome70.2 M73.7 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.
Pair CorrelationCorrelation Matching

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?

Run Climate Change Thematic Idea Now

Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 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 Climate Change Theme or any other thematic opportunities.
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When determining whether Ares Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ares Capital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ares Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ares Capital Stock:
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For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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.
Potential Ares Capital investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ares Capital investors may work on each financial statement separately, they are all related. The changes in Ares Capital's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ares Capital's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.