Ares Capital Corporation (ARCC) 10-Year Financial Performance & Capital Metrics

ARCC • • Banking & Credit

Financial ServicesAsset ManagementBusiness Development Companies (BDCs)Middle Market Lenders

AboutAres Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.Show more

Net Interest Income $1.5B +5.0%
Total Revenue $2.37B +9.3%
Net Income $1.52B
Return on Equity 12.4% -15.5%
Net Interest Margin 5.32% -11.6%
Efficiency Ratio 4.77% +10.0%
ROA 5.85% -11.2%
Equity / Assets 47.27% +0.4%
Book Value per Share 21.40 +9.9%
Tangible BV/Share 21.40 +9.9%
Debt/Equity 1.03 -3.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong NIM of 5.3%
✓Efficient operations: 4.8% efficiency ratio
✓Well capitalized: 47.3% equity/assets
✓Trading at only 1.0x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y10.58%

5Y16.25%

3Y4.91%

TTM-

Profit (Net Income) CAGR

10Y9.92%

5Y13.93%

3Y-0.97%

TTM-13.62%

EPS CAGR

10Y2.32%

5Y5.58%

3Y-11.41%

TTM-23.08%

ROCE

10Y Avg5.82%

5Y Avg5.78%

3Y Avg5.58%

Latest6.41%

Peer Comparison

Middle Market Lenders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
GSBDGoldman Sachs BDC, Inc.	1.08B	9.43	17.15	-57.7%	32.67%	9.15%	18.68%	1.23
CSWCCapital Southwest Corporation	1.36B	23.72	16.14	7.67%	43.07%	9.13%		1.08
HCXYHercules Capital, Inc.	2.36B	25.18	15.64	-9.71%	62.54%	14.13%		0.90
TRINITrinity Capital Inc. 7.875% Notes Due 2029	1.91B	25.41	12.10	29.68%	50.98%	15.22%	4.92%	1.08
HTGCHercules Capital, Inc.	3.45B	18.97	11.78	-12.79%	61.03%	14.17%		0.90
TSLXSixth Street Specialty Lending, Inc.	2.12B	22.40	11.03	-2.72%	51.86%	11.83%	8.85%	1.18
MAINMain Street Capital Corporation	5.75B	64.20	10.97	18.32%	70.11%	18.28%		0.76
GBDCGolub Capital BDC, Inc.	3.68B	13.95	9.82	80.52%	46.2%	9.4%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	617M	639M	726M	801M	889M	842M	875M	1.01B	1.43B	1.5B
NII Growth %	0.12%	0.04%	0.14%	0.1%	0.11%	-0.05%	0.04%	0.16%	0.41%	0.05%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	817M	806M	951M	1.04B	1.18B	1.16B	1.25B	1.47B	1.96B	2.16B
Interest Expense	200M	167M	225M	240M	291M	317M	372M	455M	530M	659M
Loan Loss Provision	0	0	0	0	0	0	0	0	0	0
Non-Interest Income+	-139M	-69M	23M	78M	-65M	-301M	803M	-274M	204M	205M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	678M	737M	974M	1.12B	1.11B	858M	2.05B	1.2B	2.17B	2.37B
Revenue Growth %	-0.22%	0.09%	0.32%	0.15%	-0%	-0.23%	1.39%	-0.42%	0.81%	0.09%
Non-Interest Expense	81M	75M	63M	2M	15M	38M	82M	86M	94M	113M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	397M	495M	686M	877M	809M	503M	1.6B	655M	1.54B	1.59B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.35%	0.25%	0.39%	0.28%	-0.08%	-0.38%	2.17%	-0.59%	1.35%	0.03%
Pretax Income+	397M	495M	686M	877M	809M	503M	1.6B	655M	1.54B	1.59B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	18M	21M	19M	19M	16M	19M	29M	55M	20M	73M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	379M	474M	667M	858M	793M	484M	1.57B	600M	1.52B	1.52B
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.36%	0.25%	0.41%	0.29%	-0.08%	-0.39%	2.24%	-0.62%	1.54%	0%
Net Income (Continuing)	379M	474M	667M	858M	793M	484M	1.57B	600M	1.52B	1.52B
EPS (Diluted)+	1.20	1.51	1.57	2.01	1.86	1.14	3.51	1.19	2.68	2.44
EPS Growth %	-0.38%	0.26%	0.04%	0.28%	-0.07%	-0.39%	2.08%	-0.66%	1.25%	-0.09%
EPS (Basic)	1.20	1.51	1.57	2.01	1.86	1.14	3.51	1.21	2.75	2.44
Diluted Shares Outstanding	314.38M	314M	425M	426M	427M	424M	446M	518M	575M	624M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	257M	223M	316M	296M	176M	254M	372M	303M	535M	635M
Short Term Investments	504K	0	0	0	0	0	0	0	0	0
Total Investments+	9.06B	8.82B	11.84B	12.42B	14.43B	15.52B	20.01B	21.78B	22.89B	26.72B
Investments Growth %	0%	-0.03%	0.34%	0.05%	0.16%	0.08%	0.29%	0.09%	0.05%	0.17%
Long-Term Investments	9.06B	8.82B	11.84B	12.42B	14.43B	15.52B	20.01B	21.78B	22.89B	26.72B
Accounts Receivables	0	0	0	0	0	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	0	0	0	0	94M	38M	27M	20M	0	0
Other Assets	0	-8.82B	-11.84B	-12.42B	-14.43B	94M	99M	81M	86M	381M
Total Current Assets	395.03B	335M	409M	399M	307M	549M	708M	517M	825M	1.15B
Total Non-Current Assets	9.06B	8.82B	11.84B	12.42B	94M	15.65B	20.14B	21.88B	22.98B	27.1B
Total Assets+	9.53B	9.24B	12.35B	12.89B	14.9B	16.2B	20.84B	22.4B	23.8B	28.25B
Asset Growth %	0%	-0.03%	0.34%	0.04%	0.16%	0.09%	0.29%	0.07%	0.06%	0.19%
Return on Assets (ROA)	0.04%	0.05%	0.06%	0.07%	0.06%	0.03%	0.08%	0.03%	0.07%	0.06%
Accounts Payable	113M	102M	245M	155M	177M	66M	307M	87M	115M	406M
Total Debt+	4.14B	3.87B	4.85B	5.21B	7.09B	8.6B	11.16B	12.38B	11.95B	13.76B
Net Debt	-257M	3.65B	-316M	-296M	6.92B	8.35B	10.79B	12.07B	11.41B	13.12B
Long-Term Debt	0	0	0	0	7B	8.51B	11.09B	11.54B	10.62B	13.76B
Short-Term Debt	0	0	0	0	0	27M	20M	807M	1.33B	0
Other Liabilities	0	0	0	0	-4.6M	72M	114M	56M	116M	734M
Total Current Liabilities	220M	206M	395M	348M	121M	375M	724M	1.22B	1.87B	406M
Total Non-Current Liabilities	4.14B	3.87B	4.85B	5.21B	7.09B	8.64B	11.25B	11.63B	10.73B	14.49B
Total Liabilities	4.36B	4.08B	5.25B	5.59B	7.44B	9.02B	11.97B	12.84B	12.6B	14.9B
Total Equity+	5.17B	5.17B	7.1B	7.3B	7.47B	7.18B	8.87B	9.55B	11.2B	13.36B
Equity Growth %	-0.02%	-0%	0.37%	0.03%	0.02%	-0.04%	0.24%	0.08%	0.17%	0.19%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.07%	0.09%	0.11%	0.12%	0.11%	0.07%	0.2%	0.07%	0.15%	0.12%
Book Value per Share	16.45	16.45	16.70	17.14	17.49	16.92	19.88	18.45	19.48	21.40
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	0	0	0	0	0	0	0	1M	1M	1M
Additional Paid-in Capital	5.32B	5.29B	7.19B	7.17B	7.76B	7.66B	8.55B	9.56B	10.74B	12.5B
Retained Earnings	-145M	37M	-94M	127M	-293M	-480M	315M	-2M	462M	852M
Accumulated OCI	0	0	0	0	0	0	0	0	0	0
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	360.38M	707M	-1.87B	666M	681M	734M	935M	746M	1B	1.28B
Operating CF Growth %	1.55%	0.96%	-3.64%	1.36%	0.02%	0.08%	0.27%	-0.2%	0.34%	0.28%
Net Income	379M	474M	667M	858M	793M	484M	1.57B	600M	1.52B	1.52B
Depreciation & Amortization	734K	1M	1M	0	0	0	0	0	0	0
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	11.51M	234M	-2.54B	-208M	-73M	172M	-840M	293M	-553M	-430M
Working Capital Changes	-30.86M	-2M	3M	16M	-39M	78M	208M	-147M	31M	190M
Cash from Investing+	-123.78B	236M	-182M	-362M	-1.89B	-1.29B	-3.39B	-2.1B	-489M	-3.41B
Purchase of Investments	-3.82T	-3.48B	-7.23B	-7.11B	-6.8B	-6.76B	-13.64B	-9.85B	-5.8B	-12.62B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	0	0	0	0	0	0	0	0
Other Investing	0	0	0	0	0	0	0	0	0	0
Cash from Financing+	-298M	-741M	2.14B	-324M	1.09B	707M	2.62B	1.21B	-284M	2.42B
Dividends Paid	-487M	-477M	-642M	-656M	-694M	-679M	-694M	-912M	-1.03B	-1.14B
Share Repurchases	-2M	-5M	0	0	0	-100M	0	0	0	0
Stock Issued	0	0	1.84B	0	64M	4M	819M	1B	1.16B	1.36B
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	-1000K	1000K	1000K	1000K	1000K	1000K	1000K	-1000K	1000K
Other Financing	-6M	-10M	-37M	-19M	-59M	-60M	-64M	-16M	-20M	-59M
Net Change in Cash+	62M	-34M	93M	-20M	-120M	150M	160M	-149M	227M	296M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	194.56M	257M	223M	316M	296M	176M	326M	486M	337M	564M
Cash at End	257.06M	223M	316M	296M	176M	326M	486M	337M	564M	860M
Interest Paid	0	0	0	0	0	0	0	0	0	0
Income Taxes Paid	0	0	0	0	0	0	0	0	0	0
Free Cash Flow+	0	0	-1.87B	666M	681M	734M	935M	746M	1B	1.28B
FCF Growth %	-	-	-	1.36%	0.02%	0.08%	0.27%	-0.2%	0.34%	0.28%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	7.25%	9.17%	10.88%	11.92%	10.74%	6.61%	19.53%	6.51%	14.67%	12.4%
Return on Assets (ROA)	3.98%	5.05%	6.18%	6.8%	5.71%	3.11%	8.46%	2.78%	6.59%	5.85%
Net Interest Margin	6.47%	6.91%	5.88%	6.21%	5.96%	5.2%	4.2%	4.53%	6.02%	5.32%
Efficiency Ratio	11.95%	10.18%	6.47%	0.18%	1.35%	4.43%	4%	7.19%	4.34%	4.77%
Equity / Assets	54.27%	55.87%	57.49%	56.61%	50.1%	44.31%	42.55%	42.66%	47.06%	47.27%
Book Value / Share	16.45	16.45	16.7	17.14	17.49	16.92	19.88	18.45	19.48	21.4
NII Growth	11.98%	3.57%	13.61%	10.33%	10.99%	-5.29%	3.92%	16%	41.08%	4.96%
Dividend Payout	128.5%	100.63%	96.25%	76.46%	87.52%	140.29%	44.29%	152%	67.74%	74.84%

Frequently Asked Questions

Valuation & Price

Ares Capital Corporation (ARCC) has a price-to-earnings (P/E) ratio of 8.6x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Ares Capital Corporation (ARCC) grew revenue by 9.3% over the past year. This is steady growth.

Yes, Ares Capital Corporation (ARCC) is profitable, generating $1.36B in net income for fiscal year 2024 (64.3% net margin).

Dividend & Returns

Yes, Ares Capital Corporation (ARCC) pays a dividend with a yield of 8.70%. This makes it attractive for income-focused investors.

Ares Capital Corporation (ARCC) has a return on equity (ROE) of 12.4%. This is reasonable for most industries.

Industry Metrics

Ares Capital Corporation (ARCC) has a net interest margin (NIM) of 5.3%. This indicates healthy earnings from lending activities.

Ares Capital Corporation (ARCC) has an efficiency ratio of 4.8%. This is excellent, indicating strong cost control.

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