Ares Capital Corporation cash flow to debt ratio of 7.14% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Ares Capital Corporation's free cash flow has decreased 10.92% from $1.28B last year to $1.14B, signaling decreasing performance

Ares Capital Corporation's debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability.

Ares Capital Corporation's debt has decreased relative to shareholder equity from 1.03 last year to 0.00 today, signaling strengthened financials

Ares Capital Corporation has a net debt to EBITDA ratio of 10.78x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

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

Ares Capital Corporation's profit margin has decreased (35.42%) in the last year from 64.30% to 41.52%, signaling decreasing performance

Ares Capital Corporation's short-term assets of $1.53B exceed its short-term liabilities of $894.00M

Ares Capital Corporation's return on assets of 3.15% is lower than the 5.00% threshold, indicating inefficient asset utilization

Ares Capital Corporation's return on equity of 6.78%, is lower than 15.00%, indicating bad performance

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

Ares Capital Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Ares Capital Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Ares Capital Corporation has a free cash flow yield of 7.96%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Ares Capital Corporation's yearly earnings has decreased 14.65% since last year from $1.52B to $1.30B, signaling decreasing performance

Ares Capital Corporation's yearly revenue has decreased 35.75% since last year from $2.93B to $1.88B, signaling decreasing performance

ROIC 192.49% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Ares Capital Corporation's 3-year revenue CAGR of 23.30% is positive, indicating growing revenue over the past 3 years

Ares Capital Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Ares Capital Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Ares Capital Corporation is overvalued relative to its fair value price of 6.40 based on Discounted Cash Flow model

Ares Capital Corporation has an earnings yield of 6.69%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Ares Capital Corporation is overvalued relative to its fair value price of 0.38 based on EBITDA multiple model

Ares Capital Corporation has an EV/EBITDA ratio of 21.04x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Ares Capital Corporation is undervalued relative to its fair value price of 50.53 based on Earnings Fair Value model

Ares Capital Corporation has a PEG-ratio over 1 which is considered overvalued

Ares Capital Corporation has a price-to-book ratio of 1.03x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Ares Capital Corporation has a price-to-sales ratio of 6.20x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue