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The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Credit Acceptance has an F-score of 5 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Credit Acceptance's Piotroski F-Score or its related term are showing as below:
During the past 13 years, the highest Piotroski F-Score of Credit Acceptance was 9. The lowest was 5. And the median was 6.
The historical data trend for Credit Acceptance's Piotroski F-Score 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.
Credit Acceptance Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 6.00 | 7.00 | 9.00 | 5.00 | 5.00 |
Credit Acceptance Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Piotroski F-Score | Get a 7-Day Free Trial | 5.00 | 5.00 | 5.00 | 5.00 | 5.00 |
For the Credit Services subindustry, Credit Acceptance's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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.
For the Credit Services industry and Financial Services sector, Credit Acceptance's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Credit Acceptance's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* 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.
This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Net Income was 99.5 + 22.2 + 70.8 + 93.6 = $286 Mil. Cash Flow from Operations was 296.5 + 282.7 + 313.4 + 311.2 = $1,204 Mil. Revenue was 449.7 + 472.6 + 473.2 + 485.4 = $1,881 Mil. Gross Profit was 300.2 + 319.9 + 319.5 + 323.9 = $1,264 Mil. Average Total Assets from the begining of this year (Dec22) to the end of this year (Dec23) was (6904.7 + 7154.9 + 7205.5 + 7397.1 + 7610.2) / 5 = $7254.48 Mil. Total Assets at the begining of this year (Dec22) was $6,905 Mil. Long-Term Debt & Capital Lease Obligation was $5,068 Mil. Total Current Assets was $7,437 Mil. Total Current Liabilities was $400 Mil. |
Net Income was 214.3 + 107.4 + 86.8 + 127.3 = $536 Mil. Revenue was 455.4 + 455.8 + 457.8 + 454.8 = $1,824 Mil. Gross Profit was 345.6 + 339.3 + 336.2 + 327.7 = $1,349 Mil. Average Total Assets from the begining of last year (Dec21) to the end of last year (Dec22) was (7050.9 + 7038.3 + 6978.5 + 6892.4 + 6904.7) / 5 = $6972.96 Mil. Total Assets at the begining of last year (Dec21) was $7,051 Mil. Long-Term Debt & Capital Lease Obligation was $4,591 Mil. Total Current Assets was $6,728 Mil. Total Current Liabilities was $263 Mil. |
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Credit Acceptance's current Net Income (TTM) was 286.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Credit Acceptance's current Cash Flow from Operations (TTM) was 1,204.
==> Positive ==> Score 1.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Score 1 if it's higher, 0 if it's lower.
ROA (This Year) | = | Net Income | / | Total Assets (Dec22) |
= | 286.1 | / | 6904.7 | |
= | 0.04143554 |
ROA (Last Year) | = | Net Income | / | Total Assets (Dec21) |
= | 535.8 | / | 7050.9 | |
= | 0.0759903 |
Credit Acceptance's return on assets of this year was 0.04143554. Credit Acceptance's return on assets of last year was 0.0759903.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Score 1 if CFROA > ROA, 0 if CFROA <= ROA.
Credit Acceptance's current Net Income (TTM) was 286. Credit Acceptance's current Cash Flow from Operations (TTM) was 1,204.
==> 1,204 > 286 ==> CFROA > ROA ==> Score 1.
Funding
Question 5. Change in Gearing or Leverage
Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.
Score 0 if this year's gearing is higher, 1 otherwise.
Gearing (This Year: Dec23) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Dec22 to Dec23 |
= | 5067.5 | / | 7254.48 | |
= | 0.69853387 |
Gearing (Last Year: Dec22) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Dec21 to Dec22 |
= | 4590.7 | / | 6972.96 | |
= | 0.65835743 |
Credit Acceptance's gearing of this year was 0.69853387. Credit Acceptance's gearing of last year was 0.65835743.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Current Ratio (This Year: Dec23) | = | Total Current Assets | / | Total Current Liabilities |
= | 7437.3 | / | 399.8 | |
= | 18.60255128 |
Current Ratio (Last Year: Dec22) | = | Total Current Assets | / | Total Current Liabilities |
= | 6728 | / | 263.3 | |
= | 25.5526016 |
Credit Acceptance's current ratio of this year was 18.60255128. Credit Acceptance's current ratio of last year was 25.5526016.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Credit Acceptance's number of shares in issue this year was 12.836. Credit Acceptance's number of shares in issue last year was 13.287.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Gross Margin (This Year: TTM) | = | Gross Profit | / | Revenue |
= | 1263.5 | / | 1880.9 | |
= | 0.67175288 |
Gross Margin (Last Year: TTM) | = | Gross Profit | / | Revenue |
= | 1348.8 | / | 1823.8 | |
= | 0.73955478 |
Credit Acceptance's gross margin of this year was 0.67175288. Credit Acceptance's gross margin of last year was 0.73955478.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Asset Turnover (This Year) | = | Revenue | / | Total Assets at the Beginning of This Year (Dec22) |
= | 1880.9 | / | 6904.7 | |
= | 0.27240865 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Dec21) |
= | 1823.8 | / | 7050.9 | |
= | 0.25866201 |
Credit Acceptance's asset turnover of this year was 0.27240865. Credit Acceptance's asset turnover of last year was 0.25866201.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score | = | Que. 1 | + | Que. 2 | + | Que. 3 | + | Que. 4 | + | Que. 5 | + | Que. 6 | + | Que. 7 | + | Que. 8 | + | Que. 9 |
= | 1 | + | 1 | + | 0 | + | 1 | + | 0 | + | 0 | + | 1 | + | 0 | + | 1 | |
= | 5 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Credit Acceptance has an F-score of 5 indicating the company's financial situation is typical for a stable company.
Credit Acceptance (NAS:CACC) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Thank you for viewing the detailed overview of Credit Acceptance's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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