vvincii we show the working

← Ares Capital

The business behind the dividend

MeasureARCCMedianFormula
Return on equity9.1%11.7%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating marginOperating income ÷ revenue
Net marginNet income ÷ revenue
Debt to equity1.12x0.79xTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income

Not computed here: Cash conversion, Current ratio, Free cash flow, Interest cover, Net margin, Operating margin, Owner earnings, Return on capital employed — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure202520242023202220212020Median
Return on equity9.1%11.4%13.6%6.3%17.7%6.7%9.1%
Debt to equity1.12x1.03x1.06x1.28x1.24x1.12x