showing the working

← Ares Commercial Real Estate

The business behind the dividend

MeasureACREMedianFormula
Return on equity-0.2%10.6%Net income ÷ shareholders’ equity
Return on capital employed-0.0%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating margin-1.1%14.3%Operating income ÷ revenue
Net margin-1.6%10.1%Net income ÷ revenue
Debt to equity1.86x0.73xTotal debt ÷ shareholders’ equity
Interest cover-0.01x4.22xOperating 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
Accruals-1.4%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Free cash flow, Owner earnings — 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.

Measure2025202420232022202120202019201820172016Median
Return on equity-0.2%-6.5%-6.2%4.0%8.9%4.6%8.7%9.1%7.3%10.7%4.6%
Return on capital employed-0.0%-2.8%-2.6%1.8%3.6%1.6%2.8%1.6%
Operating margin-1.1%-50.3%-41.9%28.3%59.9%26.8%48.5%26.8%
Net margin-1.6%-50.2%-41.8%27.9%59.2%26.4%47.9%69.8%65.6%99.5%27.9%
Debt to equity1.86x1.33x1.43x1.28x1.53x1.96x2.10x2.09x2.55x2.23x1.86x
Cash conversion1.92x0.80x1.45x0.88x1.02x1.03x-0.10x1.02x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Ares Commercial Real Estate pays out less than 8 of them. The median for that group is 152.3%, against this company’s 182.7%.

Closest on operating cash flow

Same sector and same denominator, so the figures are comparable. All 130 in real estate →