Ares Commercial (ACRE) - Total Debt to Equity Ratio

This chart of market quotes on GURU.Markets demonstrates that Ares Commercial (ACRE) has a total debt-to-equity ratio of 2.48, while the company fully delegates its IT infrastructure and credit monitoring to third-party partners. The high barrier to entry is driven by strict oversight and the need for low-cost financing. Income stability is ensured by a rigorous borrower selection process and the analytical resources of Ares, which minimizes the impact of market volatility.

This indicator measures the proportion of borrowed funds relative to equity, determining the organization's degree of financial leverage. The calculation is based on the ratio of total liabilities to the net asset value of the owners. By analyzing the business's debt level through the debt-to-equity ratio, an investor assesses the stability of the financing structure. For Ares Commercial (ACRE), this balance is critical, as excessive leverage increases dependence on the cost of institutional capital. Debt management efficiency correlates directly with the quality of LTV metrics within the commercial real estate portfolio.