Credit Acceptance (Credit Acceptance) EBIT : $306 Mil (TTM As of Mar. 2024)

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What is Credit Acceptance EBIT?

Credit Acceptance's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $80 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $306 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Credit Acceptance's annualized ROC % for the quarter that ended in Mar. 2024 was 3.21%. Credit Acceptance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 208.39%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Credit Acceptance's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 2.57%.

Credit Acceptance EBIT Historical Data

The historical data trend for Credit Acceptance's EBIT 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.

* Premium members only.

Credit Acceptance EBIT Chart

Credit Acceptance Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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848.10

552.80

1,255.80

702.30

347.30

Credit Acceptance Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
EBIT	Get a 7-Day Free Trial															122.00	22.60	91.10	112.00	80.10

Competitive Comparison of Credit Acceptance's EBIT

For the Credit Services subindustry, Credit Acceptance's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution in the Credit Services Industry

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

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

Credit Acceptance EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $306 Mil.

Credit Acceptance (NAS:CACC) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Credit Acceptance's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	320.4 * ( 1 - 25.58% )	/	( (7197.2	+	7676.4)	/ 2 )
=	238.44168	/	7436.8
=	3.21 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7610.2	-	399.8	-	( 13.2	-	max(0, 399.8	-	7437.3	+	13.2	))
=	7197.2

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8097	-	412.2	-	( 8.4	-	max(0, 412.2	-	7929	+	8.4	))
=	7676.4

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Credit Acceptance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	320.4	/	( ( (46.5 + max(64.7, 0))	+	(44.6 + max(151.7, 0)) )	/	2 )
=	320.4	/	( ( 111.2	+	196.3 )	/	2 )
=	320.4	/	153.75
=	208.39 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	464.5)	-	(399.8	+	0	+	0)
=	64.7

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	563.9)	-	(412.2	+	0	+	0)
=	151.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Credit Acceptance's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2024 )
	=	305.8	/	11899.354
	=	2.57 %

Credit Acceptance EBIT Related Terms

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Credit Acceptance (Credit Acceptance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Credit Acceptance Corp (NAS:CACC) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

CRDA34:Brazil

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.

Executives

Wendy A Rummler	officer: Senior VP, Human Resources	25505 WEST TWELVE MILE ROAD, SOUTHFIELD MI 48034
Douglas W Busk	officer: Sr. Vice President & Treasurer	25505 WEST TWELVE MILE ROAD, SOUTH FIELD MI 48034
Nicholas J Elliott	officer: Chief Alignment Officer	25505 WEST TWELVE MILE RD, SOUTHFIELD MI 48034
Arthur L Smith	officer: Chief Analytics Officer	25505 W 12 MILE ROAD, SOUTHFIELD MI 48034
Sean Edward Quinn	director	C/O CIMPRESS PLC, 275 WYMAN STREET, WALTHAM MA 02451
Thomas W Smith	10 percent owner, other: Member of Section 13(d) Group	2200 BUTTS ROAD, SUITE 320, BOCA RATON FL 33431
Scott J Vassalluzzo	director, 10 percent owner, other: Member of Section 13(d) Group	2200 BUTTS ROAD, SUITE 320, BOCA RATON FL 33431
Donald A. Foss Irrevocable Trust Dated August 14, 2022	10 percent owner	39395 W. TWELVE MILE ROAD, SUITE 200, FARMINGTON HILLS MI 48331
Daniel A. Ulatowski	officer: Chief Sales Officer	25505 W 12 MILE ROAD, SOUTHFIELD MI 48034
Andrew K Rostami	officer: Chief Mktg and Product Officer	25505 WEST TWELVE MILE ROAD, SOUTHFIELD MI 48034
Prescott General Partners Llc	10 percent owner, other: Member of Section 13(d) Group	2200 BUTTS ROAD, SUITE 320, BOCA RATON FL 33431
Ravi Mohan Valiyaveettil	officer: Chief Technology Officer	25505 WEST TWELVE MILE RD, SOUTHFIELD MI 48034
Thomas N Tryforos	director	323 RAILROAD AVE, GREENWICH CT 06830
Kenneth Booth	officer: Chief Financial Officer	25505 WEST TWELVE MILE ROAD, SOUTHFIELD MI 48034
Donald A Foss	director, 10 percent owner, officer: Chairman	29777 TELEGRAPH ROAD, SUITE 2611, SOUTHFIELD MI 48034