Ares Commercial Real Estate Corporation cash flow to debt ratio of 2.04% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Ares Commercial Real Estate Corporation's free cash flow has decreased 44.52% from $35.55M last year to $19.72M, signaling decreasing performance

Ares Commercial Real Estate Corporation's debt to equity ratio is 2.58, which means that the company's assets are unhealthy financed, signaling financial risk.

Ares Commercial Real Estate Corporation's debt has increased relative to shareholder equity from 2.17 last year to 2.58 today, signaling weakened financials

Ares Commercial Real Estate Corporation has a net debt to EBITDA ratio of 14.51x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Ares Commercial Real Estate Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Ares Commercial Real Estate Corporation's profit margin has increased (-91.04%) in the last year from -50.29% to -4.51%, signaling increasing performance

Ares Commercial Real Estate Corporation's short-term liabilities of $870.94M exceed its short-term assets of $67.23M, signaling financial risk

Ares Commercial Real Estate Corporation's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Ares Commercial Real Estate Corporation's return on equity of -0.88%, is lower than 15.00%, indicating bad performance

Ares Commercial Real Estate Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Ares Commercial Real Estate Corporation had positive net income in only 2 out of 5 years, indicating unstable earnings

Ares Commercial Real Estate Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Ares Commercial Real Estate Corporation has a free cash flow yield of 7.71%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Ares Commercial Real Estate Corporation's yearly earnings has increased -97.42% since last year from $-35.03M to $-902.00K, signaling increasing performance

Ares Commercial Real Estate Corporation's yearly revenue has increased -660.29% since last year from $-15.23M to $85.35M, signaling increasing performance

ROIC 0.89% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Ares Commercial Real Estate Corporation's 3-year revenue CAGR of -7.84% is negative, indicating declining revenue over the past 3 years

Ares Commercial Real Estate Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Ares Commercial Real Estate Corporation had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Ares Commercial Real Estate Corporation has insufficient data to evaluate this check.

Ares Commercial Real Estate Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Ares Commercial Real Estate Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Ares Commercial Real Estate Corporation has an EV/EBITDA ratio of 18.15x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Ares Commercial Real Estate Corporation is undervalued relative to its fair value price of 8.30 based on Earnings Fair Value model

Ares Commercial Real Estate Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Ares Commercial Real Estate Corporation has a price-to-book ratio of 0.52x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Ares Commercial Real Estate Corporation has a price-to-sales ratio of 2.59x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue