ARESCAUTIOUS

Return on Equity (ROE)

12.3%

Higher than 46% of Financial Services sector peers

Updated 1569h ago

Sector Performance

46th percentile

ARES

12.3%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity.

Ares Management Corporation’s current ROE of 12.3% means it earns $0.123 for every dollar of equity. This trails the sector median of 14.0%, placing the firm in the 44th percentile among its Financial Services peers. Trend data is unavailable: both the year-over-year and quarter-over-quarter changes are listed as N/A, and only a single historical value of 12.3% is provided. The combination of a below-median ROE level and no trend history suggests a neutral risk profile — the metric offers neither a clear advantage nor a red flag for investors. This performance directly supports the overall NEUTRAL verdict, as it aligns with an average peer standing lacking directional momentum.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ARES?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ARES's Return on Equity (ROE) compare to its sector?

ARES's Return on Equity (ROE) of 12.3% compares to a Financial Services sector median of 12.9%, placing it in the 46th percentile.

Who are ARES's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%), PRU (10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.