Arch Capital Group Ltd.
Financial ratios & Valuation

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
9.2615.7915.0419.7414.2510.5310.348.0715.676.166.0310.53
Price/Sales ratio
1.902.132.342.271.972.541.751.952.412.002.121.97
Price/Book Value ratio
1.261.361.261.321.141.491.101.281.791.491.541.14
Price/Cash Flow ratio
7.458.517.4610.996.928.415.035.086.064.765.098.41
Price/Free Cash Flow ratio
7.608.647.5411.227.068.575.105.146.144.805.178.57
Price/Earnings Growth ratio
0.50-0.490.50-0.840.420.09-0.690.13-0.580.02-0.270.09
Dividend Yield
0.28%0.25%0.26%0.37%0.38%0.24%0.28%0.27%0.17%0.14%5.41%0.38%
Profitability Indicator Ratios
Gross Profit Margin
85.04%83.47%85.78%84.91%85.68%86.98%88.61%87.88%87.14%89.76%93.01%85.68%
Operating Profit Margin
22.28%15.69%17.75%16.09%18.12%26.01%17.76%25.24%17.57%99.29%22.64%18.12%
Pretax Profit Margin
20.83%14.26%19.21%14.10%15.37%27.25%19.01%23.56%15.50%24.82%26.68%15.37%
Net Profit Margin
20.58%13.52%15.56%11.53%13.84%24.12%16.94%24.16%15.37%32.58%34.97%13.84%
Effective Tax Rate
2.72%7.16%3.66%16.84%13.53%8.42%7.08%6.11%5.37%-25.79%-17.90%8.42%
Return on Assets
3.79%2.32%2.35%1.93%2.35%4.31%3.24%4.78%3.07%7.54%7.75%2.35%
Return On Equity
13.61%8.66%8.39%6.73%8.02%14.23%10.72%15.92%11.43%24.20%28.32%8.02%
Return on Capital Employed
4.43%2.98%2.97%2.98%3.38%5.09%3.64%5.40%3.77%22.98%5.02%3.38%
Liquidity Ratios
Current Ratio
N/AN/A4.844.955.144.90N/AN/AN/AN/AN/A4.90
Quick Ratio
0.780.509.058.989.7310.3713.4411.940.00N/AN/A10.37
Cash ratio
0.290.240.300.190.220.220.310.250.26N/AN/A0.22
Days of Sales Outstanding
N/AN/AN/AN/AN/AN/A376.32422.97N/A124.32366.38N/A
Days of Inventory outstanding
N/AN/A-13.64K-11.68K-2.58K-2.59K-3.10K-2.71KN/AN/AN/A-2.58K
Operating Cycle
N/AN/A-13.64K-11.68K-2.58K-2.59K-2.72K-2.29KN/A124.32366.38-2.58K
Days of Payables Outstanding
920.29949.851.16K1.03K1.15K1.15K1.03K1.15K965.15997.991.49K1.15K
Cash Conversion Cycle
-920.29-949.85-14.80K-12.72K-3.73K-3.74K-3.75K-3.44K-965.15-873.67-1.12K-3.73K
Debt Ratios
Debt Ratio
0.040.050.080.070.060.060.060.060.050.040.030.06
Debt Equity Ratio
0.160.210.300.270.230.200.230.200.210.140.120.20
Long-term Debt to Capitalization
0.120.170.230.210.180.170.180.160.170.120.100.17
Total Debt to Capitalization
0.140.170.230.210.180.170.180.160.170.120.100.17
Interest Coverage Ratio
N/AN/A12.916.446.9815.29N/AN/AN/AN/A26.796.98
Cash Flow to Debt Ratio
1.030.750.560.430.710.860.951.251.402.102.480.71
Company Equity Multiplier
3.593.733.553.483.413.293.303.323.713.203.303.29
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.250.250.310.200.280.300.340.380.390.420.410.28
Free Cash Flow / Operating Cash Flow Ratio
0.980.980.980.970.980.980.980.980.980.990.990.98
Cash Flow Coverage Ratio
1.030.750.560.430.710.860.951.251.402.102.480.71
Short Term Coverage Ratio
10.37N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Dividend Payout Ratio
2.62%4.07%4.05%7.43%5.49%2.54%2.96%2.23%2.75%0.90%0.70%2.54%