Credit Acceptance (FRA:2D5) Debt-to-EBITDA : 16.09 (As of Mar. 2024)

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What is Credit Acceptance Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

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 annualized EBITDA for the quarter that ended in Mar. 2024 was €321 Mil. Credit Acceptance's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 16.09.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

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

FRA:2D5' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.6 Med: 5.18 Max: 16.85
Current: 16.85

During the past 13 years, the highest Debt-to-EBITDA Ratio of Credit Acceptance was 16.85. The lowest was 3.60. And the median was 5.18.

FRA:2D5's Debt-to-EBITDA is ranked worse than
69.47% of 262 companies
in the Credit Services industry
Industry Median: 7.505 vs FRA:2D5: 16.85

Credit Acceptance Debt-to-EBITDA Historical Data

The historical data trend for Credit Acceptance's Debt-to-EBITDA 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 Debt-to-EBITDA Chart

Credit Acceptance Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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5.21

7.99

3.60

6.31

13.55

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-EBITDA	Get a 7-Day Free Trial															9.19	40.92	12.58	10.67	16.09

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

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

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

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

Credit Acceptance Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

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

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	4646.897)	/	342.866
	=	13.55

Credit Acceptance's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	5162.58)	/	320.896
	=	16.09

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.

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

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

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Credit Acceptance Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Credit Acceptance's Debt-to-EBITDA 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-EBITDA

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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