Ares Capital Balance Sheet Health
Financial Health criteria checks 2/6
Ares Capital has a total shareholder equity of $12.8B and total debt of $13.6B, which brings its debt-to-equity ratio to 106.2%. Its total assets and total liabilities are $27.1B and $14.3B respectively. Ares Capital's EBIT is $2.1B making its interest coverage ratio 3.2. It has cash and short-term investments of $486.0M.
Key information
106.2%
Debt to equity ratio
US$13.56b
Debt
| Interest coverage ratio | 3.2x |
| Cash | US$486.00m |
| Equity | US$12.77b |
| Total liabilities | US$14.33b |
| Total assets | US$27.10b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: 9A2's short term assets ($1.0B) exceed its short term liabilities ($673.0M).
Long Term Liabilities: 9A2's short term assets ($1.0B) do not cover its long term liabilities ($13.7B).
Debt to Equity History and Analysis
Debt Level: 9A2's net debt to equity ratio (102.3%) is considered high.
Reducing Debt: 9A2's debt to equity ratio has increased from 89.9% to 106.2% over the past 5 years.
Debt Coverage: 9A2's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 9A2's interest payments on its debt are well covered by EBIT (3.2x coverage).