ARES Debt-to-Equity Ratio Analysis

A debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder equity to finance its operations — at 3.51x, Ares Management has $3.51 of debt for every $1 of equity, indicating heavy leverage.

This level is far above the sector median of 0.62x and places the firm in the 94th percentile among financial services peers, meaning it uses more debt than nearly all comparable companies. The year-over-year and quarter-over-quarter changes are both listed as N/A, and no trend can be assessed because historical data is limited to a single quarter. Without a trend, the only signal is the high absolute ratio, which suggests elevated financial risk from potential interest coverage strain or refinancing pressure. For investors, the combination of a very high debt ratio and no observable downward movement implies a cautious stance toward downside risk rather than an opportunity. This metric contradicts a neutral overall verdict because the extreme leverage is a clear warning sign that could justify a more bearish assessment, though other factors may offset it.

Frequently Asked Questions

Closest Sector Peers