ACGL FY 2023 Earnings Report — Arch Capital Group Ltd. Revenue & Financial Results | Market Cap Arena

Arch Capital Group Ltd.ACGL

FY 2023 Earnings

Reported February 23, 2024

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2023	Prior Q	FY 2022	QoQ Change	YoY Change
Revenue	$13.3B	—	$9.7B	—	37.7%
Op. Income	$3.1B	—	$1.4B	—	126.5%
Gross Margin	35.6%	—	29.9%	—	5.7pp
Net Margin	33.4%	—	15.3%	—	18.1pp
EPS (Diluted)	$11.62	—	$3.80	—	205.8%
Free Cash Flow	$5.7B	—	$3.8B	—	51.4%

Revenue Flow

Item	Amount
REVENUE	$13.3B
Cost of Revenue	$8.6B
GROSS PROFIT	$4.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$102M
SG&A Expenses	$102M
Other Expenses	$1.5B
Operating Expenses	$1.6B
Cost & Expenses	$10.2B
OPERATING INCOME	$3.1B
Interest Income	$0
Interest Expense	$133M
Other Income/Expenses	$462M
INCOME BEFORE TAX	$3.6B
Income Tax Expense	-$873M
Net Income from Continuing Ops	$4.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$4.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$4.4B
D&A	$95M
EBIT	$3.5B
EBITDA	$3.6B
EPS	$12
EPS Diluted	$12

Income Statement

Item	Amount
REVENUE	$13.3B
Cost of Revenue	$8.6B
GROSS PROFIT	$4.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$102M
SG&A Expenses	$102M
Other Expenses	$1.5B
Operating Expenses	$1.6B
Cost & Expenses	$10.2B
OPERATING INCOME	$3.1B
Interest Income	$0
Interest Expense	$133M
Other Income/Expenses	$462M
INCOME BEFORE TAX	$3.6B
Income Tax Expense	-$873M
Net Income from Continuing Ops	$4.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$4.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$4.4B
D&A	$95M
EBIT	$3.5B
EBITDA	$3.6B
EPS	$12
EPS Diluted	$12

Cash Flow Statement

Item	Amount
Net Income	$4.4B
Depreciation & Amortization	$95M
Stock-Based Compensation	$93M
Deferred Income Tax	$0
Other Non-Cash Items	-$33M
Change in Working Capital	$1.2B
OPERATING CASH FLOW	$5.7B
Capital Expenditure	-$52M
Acquisitions (Net)	$0
Purchases of Investments	-$21.4B
Sales/Maturities of Investments	$16.0B
Other Investing Activities	-$23M
NET CASH FROM INVESTING	-$5.5B
Net Debt Issuance	$0
Common Stock Repurchased	-$2M
Common Dividends Paid	$0
Other Financing Activities	-$27M
NET CASH FROM FINANCING	-$69M
FREE CASH FLOW	$5.7B
Net Change in Cash	$225M

Balance Sheet

Item	Amount
Cash & Equivalents	$917M
Short-Term Investments	$7.1B
Net Receivables	$13.8B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$24.0B
PP&E (Net)	$0
Goodwill	$345M
Intangible Assets	$1.9B
Long-Term Investments	$27.9B
Tax Assets	$0
Other Non-Current Assets	$4.7B
TOTAL NON-CURRENT ASSETS	$34.9B
TOTAL ASSETS	$58.9B
Account Payables	$3.8B
Short-Term Debt	$0
Deferred Revenue	$8.8B
Other Current Liabilities	$23.0B
TOTAL CURRENT LIABILITIES	$35.9B
Long-Term Debt	$2.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$1.9B
TOTAL NON-CURRENT LIABILITIES	$4.7B
TOTAL LIABILITIES	$40.6B
Common Stock	$1M
Additional Paid-In Capital	$2.3B
Retained Earnings	$20.3B
Treasury Stock	-$4.4B
Accum. Other Comp. Income	-$676M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$18.4B
Minority Interest	$2M
TOTAL EQUITY	$18.4B
TOTAL LIABILITIES & EQUITY	$58.9B
Total Debt	$2.7B
Net Debt	$1.8B