Credit Acceptance has a quick ratio of 19.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Credit Acceptance's Quick Ratio or its related term are showing as below:
BSP:CRDA34'
s Quick Ratio Range Over the Past 10 Years
Min: 18.6 Med: 28.11 Max: 41.68
Current: 19.24
During the past 13 years, Credit Acceptance's highest Quick Ratio was 41.68. The lowest was 18.60. And the median was 28.11.
BSP:CRDA34's Quick Ratio is ranked better than 63.47% of 375
companies
in the Credit Services industry
Industry Median: 4.79
vs BSP:CRDA34: 19.24
Credit Acceptance Quick Ratio Historical Data
The historical data trend for Credit Acceptance's Quick Ratio 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.
Competitive Comparison of Credit Acceptance's Quick Ratio
For the Credit Services subindustry, Credit Acceptance's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Credit Acceptance's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Credit Acceptance's Quick Ratio falls into.
Credit Acceptance Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Credit Acceptance's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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 (BSP:CRDA34) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Credit Acceptance Quick Ratio Related Terms
Thank you for viewing the detailed overview of Credit Acceptance's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Credit Acceptance (BSP:CRDA34) Business Description
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.
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