Is ARES CAPITAL CORP (ARCC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | Excluded — Asset Management | ✗ NOT HALAL | |||
| DJIM | Excluded — Asset Management | ✗ NOT HALAL | |||
| MSCI | Excluded — Asset Management | ✗ NOT HALAL | |||
| S&P | Excluded — Asset Management | ✗ NOT HALAL | |||
| FTSE | Excluded — Asset Management | ✗ NOT HALAL | |||
Financial Highlights
Profitability
| Gross Margin | 100.0% | |
| Operating Margin | 75.3% | |
| Net Margin | 42.6% | |
| Return on Equity (ROE) | 9.4% | |
| Return on Assets (ROA) | 4.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$1.7B |
| Free Cash Flow | -$1.7B |
| Total Debt | $16.0B |
| Debt-to-Equity | 111.9 |
| Current Ratio | 0.6 |
| Total Assets | $31.2B |
Price & Trading
| Last Close | $17.92 |
| 50-Day MA | $19.20 |
| 200-Day MA | $20.70 |
| Avg Volume | 7.3M |
| Beta | 0.6 |
|
52-Week Range
$17.40
| |
About ARES CAPITAL CORP (ARCC)
Ares Capital Corporation is a business development company specializing in growth capital, acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It invest in the United States based companies. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $30 million and $500 million, in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
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Frequently Asked Questions
Is ARES CAPITAL CORP (ARCC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ARES CAPITAL CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ARES CAPITAL CORP's debt ratio?
ARES CAPITAL CORP's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.
What are ARES CAPITAL CORP's key financial metrics?
ARES CAPITAL CORP has a market capitalization of $12.5B, trailing P/E ratio of 9.4, and revenue of $1.5B. The company maintains a gross margin of 100.0% and a net margin of 42.6%. Return on equity stands at 9.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.