Credit Acceptance (FRA:2D5) Debt-to-Equity : 3.40 (As of Mar. 2024)

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What is Credit Acceptance Debt-to-Equity?

Credit Acceptance's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €0 Mil. Credit Acceptance's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €5,163 Mil. Credit Acceptance's Total Stockholders Equity for the quarter that ended in Mar. 2024 was €1,520 Mil. Credit Acceptance's debt to equity for the quarter that ended in Mar. 2024 was 3.40.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Credit Acceptance's Debt-to-Equity or its related term are showing as below:

FRA:2D5' s Debt-to-Equity Range Over the Past 10 Years
Min: 1.78 Med: 2.29 Max: 3.4
Current: 3.4

During the past 13 years, the highest Debt-to-Equity Ratio of Credit Acceptance was 3.40. The lowest was 1.78. And the median was 2.29.

FRA:2D5's Debt-to-Equity is ranked worse than
78.75% of 433 companies
in the Credit Services industry
Industry Median: 1.18 vs FRA:2D5: 3.40

Credit Acceptance Debt-to-Equity Historical Data

The historical data trend for Credit Acceptance's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Credit Acceptance Debt-to-Equity Chart

Credit Acceptance Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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1.93

2.00

2.53

2.83

2.89

Credit Acceptance Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-Equity	Get a 7-Day Free Trial															2.74	2.72	2.91	2.89	3.40

Competitive Comparison of Credit Acceptance's Debt-to-Equity

For the Credit Services subindustry, Credit Acceptance's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Credit Acceptance's Debt-to-Equity Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Credit Acceptance's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Credit Acceptance's Debt-to-Equity falls into.

Credit Acceptance Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Credit Acceptance's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0	+	4646.897)	/	1608.143
	=	2.89

Credit Acceptance's Debt to Equity Ratio for the quarter that ended in Mar. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0	+	5162.58)	/	1520.024
	=	3.40

Credit Acceptance (FRA:2D5) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Credit Acceptance Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Credit Acceptance's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Credit Acceptance (FRA:2D5) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Credit Acceptance Corp (FRA:2D5) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

CACC:USA

Address

25505 W. Twelve Mile Road, Southfield, MI, USA, 48034-8339

Website

https://www.creditacceptance.com

Credit Acceptance Corp is a consumer finance company that specializes in automobile loans. These loans are offered through a U.S. nationwide network of automobile dealers that benefit from sales of vehicles to consumers who could otherwise not obtain financing. The company also benefits from repeat and referral sales, and from sales to customers responding to advertisements for financing, but qualify for traditional financing. The company derives its revenue from finance charges, premiums earned on the reinsurance of vehicle service contracts, and other fees. Of these, financing charges, including servicing fees, are by far the largest source of revenue.

Credit Acceptance (FRA:2D5) Headlines

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