Credit Acceptance Corp

CACC

Equity

ISIN US2253101016 / Valor 922610

NASDAQ (2024-12-26)

USD 472.82+0.86%

Credit Acceptance Corp
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About company

Credit Acceptance Corp is a specialized finance company that primarily focuses on providing auto loans to individuals with less-than-ideal credit histories. Founded with the ethos of offering financial opportunities to a broader segment of the population, the company collaborates with a network of approximately 15,000 automotive dealers across the United States to facilitate vehicle financing for over four million customers. Credit Acceptance Corp positions itself as a crucial intermediary, enabling dealers to extend credit to consumers who might otherwise be unable to secure financing due to their credit challenges. Beyond its core business operations, the company also engages in various community service activities and emphasizes its commitment to social responsibility, diversity, and inclusion within its corporate culture.

Summarized from source with an LLMView SourceSector: Finance

Net Income

Credit Acceptance Corp reported a consolidated net income of $93.6 million, or $7.29 per diluted share, for the fourth quarter of 2023. This represents a decrease from the $127.3 million, or $9.58 per diluted share, reported in the same quarter of 2022.

Adjusted Net Income

The adjusted net income for Credit Acceptance Corp in the fourth quarter of 2023 was $129.1 million, or $10.06 per diluted share. This is a decline from the adjusted net income of $156.1 million, or $11.74 per diluted share, in the fourth quarter of 2022.

Loan Portfolio Growth

Credit Acceptance Corp experienced growth in its Consumer Loan assignment volume, with unit and dollar volumes increasing by 26.7% and 21.3%, respectively, compared to the fourth quarter of 2022. The average balance of the loan portfolio also saw an increase of 9.1% on a GAAP basis and 13.4% on an adjusted basis.

Initial Spread Increase

The initial spread on Consumer Loan assignments for Credit Acceptance Corp increased to 21.7% in the fourth quarter of 2023, compared to 20.9% in the same period of 2022. This indicates a higher margin on new loan assignments.

Cost of Debt

Credit Acceptance Corp reported an increase in its average cost of debt during the fourth quarter of 2023. This was primarily due to higher interest rates on recently completed or extended secured financings and the repayment of older secured financings with lower interest rates.

Summarized from source with an LLMView Source

Key figures

-11.7%1Y

-30.5%3Y

8.28%5Y

Performance

34.2%1Y

43.3%3Y

48.5%5Y

Volatility