Ares Management Corporation — Earnings Quality Grade F
ARES · Financial Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 12 days, change -4 days YoY
AR growth 11.3% vs revenue growth 44.2%
Revenue 44.2%, CFFO 17.0%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -21.1% vs revenue 44.2%. Normal
SG&A/Gross Profit = 68.9%. Normal
Gross margin 54.2%, change -1.2pp. Stable
Cash Flow Quality
CFFO/NI = 6.19. Profits backed by cash
FCF $3.2B, FCF/NI = 6.06
Accruals ratio = -9.6%. Low accruals
Cash $1.4B covers only 10% of debt $14.2B
Balance Sheet Health
Goodwill+Intangibles $5.6B = 130% of equity. Over 50%
Debt/EBITDA = 6.2x (>4x). Interest coverage = 1.2x (<2x). Financial stress
Other assets -64.2% vs revenue 44.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 160% YoY
Manipulation Score
M-Score = -2.64 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score — Not Applicable
Ares Management Corporation is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09