Ares Capital Corp Liquidation Value
Cash & Equivalents
Key Metrics
Cash Liquidation Value
- Operating Lease Liability: not reported in this period (annual-only)
- Current Liabilities: not reported
- Finance Lease Liability: not reported
Liquid Liquidation Value
- Operating Lease Liability: not reported in this period (annual-only)
- Accounts Receivable: not reported
- Current Liabilities: not reported
- Finance Lease Liability: not reported
Operating Liquidation Value
- Operating Lease Liability: not reported in this period (annual-only)
- Accounts Receivable: not reported
- Current Liabilities: not reported
- Finance Lease Liability: not reported
- Inventory: not reported
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Liquidation Ladder
| Metric | Total | Per Share |
|---|---|---|
| Cash Liquidation Value | $-15.34B | $-21.37 |
| Liquid Liquidation Value | $-15.34B | $-21.37 |
| Operating Liquidation Value | $-15.34B | $-21.37 |
Key Components (as of 2026-03-31)
| Cash & Equivalents | $505.00M |
| Accounts Receivable | N/A |
| Inventory | N/A |
| Current Liabilities | N/A |
| Long-term Debt (?) | $15.85B |
| Op. Lease Liability (?) | N/A |
| Finance Lease (?) | N/A |
| Shares Outstanding | 718.0M |
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Historical
| Period | Cash | AR | Inventory | AP | Curr Liab | LT Debt | Op Lease | Fin Lease |
|---|---|---|---|---|---|---|---|---|
| 2026-03-31 | $505.00M | N/A | N/A | N/A | N/A | $15.85B | N/A | N/A |
| 2025-12-31 | $638.00M | N/A | N/A | N/A | N/A | $15.99B | N/A | N/A |
| 2025-09-30 | $1.04B | N/A | N/A | N/A | N/A | $15.61B | N/A | N/A |
SEC Filings
| Period | Form | Filed | Link |
|---|---|---|---|
| 2026-03-31 | 10-Q | 2026-04-28 | View |
| 2025-12-31 | 10-K/A | 2026-03-23 | View |
| 2025-12-31 | 10-K | 2026-02-04 | View |
| 2025-09-30 | 10-Q | 2025-10-28 | View |
| 2025-06-30 | 10-Q | 2025-07-29 | View |
| 2025-03-31 | 10-Q | 2025-04-29 | View |
| 2024-12-31 | 10-K/A | 2025-03-24 | View |
| 2024-12-31 | 10-K | 2025-02-05 | View |
AI Insights
ARCC is a Business Development Company (BDC) regulated under the Investment Company Act. The liquidation lens applied here differs structurally from a standard operating company: ARCC's primary assets are investment securities carried at fair value under ASC 820, not tangible operating assets subject to the conventional haircut schedule. The liquidation analysis therefore centers on (1) the discount between portfolio fair value and the debt stack that must be repaid at face, and (2) the embedded illiquidity risk that would compress realized values below reported fair value in a forced-sale scenario.
As of March 31, 2026, total assets are $30.7B, of which approximately $29.5B represents investments at fair value (Level 3 predominant). Aggregate debt principal outstanding is $15.9B (carrying value $15.8B), and total liabilities are $16.6B, producing reported net assets (stockholders' equity) of $14.1B or $19.59 NAV/share. The asset coverage ratio per the Investment Company Act stands at 188%, well above the 150% statutory floor.
Under a liquidation scenario, the operative question is how much of the $29.5B portfolio would be realizable against $15.9B in debt principal at face. The filing explicitly states that forced or liquidation-sale prices could be 'significantly less' than recorded fair value. The portfolio is predominantly first lien senior secured floating-rate debt (71% variable rate), generally illiquid, with no ready market. A modest stress haircut (e.g., 10-15% on the $29.5B portfolio) would reduce realizable portfolio value to approximately $25.1-26.6B, still well above the $16.6B liability stack in aggregate, suggesting positive residual recovery to equity. The MFFAIS-computed liquidation value of negative $15.3B appears to apply a standard industrial-company haircut framework (e.g., treating investments as intangibles or goodwill at 0%), which is not applicable to a BDC whose balance sheet is essentially a marked-to-market loan portfolio.
The quarter saw $442M in net unrealized losses on investments (vs. $19M in Q1 2025), driven by broad portfolio depreciation across software and services credits. NAV/share declined from $19.94 (12/31/2025) to $19.59 (3/31/2026), a $0.35 per share decrease despite $0.48/share dividends paid, implying the portfolio decline more than offset earnings. Total debt principal was reduced QoQ by $85M (from $16.0B to $15.9B), primarily reflecting repayment of the $1.15B January 2026 Notes offset by new April 2031 Notes issuance ($750M) and facility draws. The debt-to-equity ratio is 1.13:1, essentially flat from 1.12:1 at year-end 2025.
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