Credit Acceptance Extends Revolving Secured Warehouse Facility
December 30, 2023
☀️Trending News
Credit Acceptance ($NASDAQ:CACC) Corporation (NASDAQ: CACC) recently announced the extension of its revolving secured warehouse facility. This facility provides secured financing to their automotive dealers and customers, allowing them to provide financing to their customers for the purchase of vehicles. Credit Acceptance is a specialty finance company that provides auto loan financing to subprime and nonprime consumers. This reinforces Credit Acceptance’s ability to finance consumer loans and advances for dealers and consumers. This revolving warehouse facility allows Credit Acceptance to continue to provide assistance to their consumers, while also managing collateral risk. The extended facility also demonstrates Credit Acceptance’s commitment to maintaining liquidity and financial flexibility for their dealers and customers. This helps Credit Acceptance to remain competitive in the auto finance industry in terms of providing services and assistance to its customers.
Additionally, Credit Acceptance is able to use this facility to help them manage their own liquidity needs. Overall, Credit Acceptance has demonstrated its commitment to providing assistance to its dealers and customers through the extension of its revolving secured warehouse facility. This demonstrates the company’s commitment to providing competitive services to its customers, while also managing its own liquidity requirements.
Market Price
The facility is used for the funding of investments and the company’s ongoing operations. The stock opened at $533.4 and closed at $532.7, resulting in a 0.3% decline from its previous closing price of $534.2. This move reflects the company’s commitment to maintain financial flexibility and invest in its future while continuing to pursue growth opportunities.
The facility is provided by a syndicate of banks and offers flexible terms and conditions, enabling Credit Acceptance to provide financial solutions to its customers. The move is expected to help the company pursue its growth objectives even further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Credit Acceptance. More…
| Total Revenues | Net Income | Net Margin |
| 1.85k | 319.8 | 17.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Credit Acceptance. More…
| Operations | Investing | Financing |
| 1.18k | -1.19k | 56.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Credit Acceptance. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.4k | 5.7k | 135.35 |
Key Ratios Snapshot
Some of the financial key ratios for Credit Acceptance are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | -9.5% | 22.1% |
| FCF Margin | ROE | ROA |
| 63.5% | 14.8% | 3.5% |
Analysis
At GoodWhale, we conducted an in depth analysis of CREDIT ACCEPTANCE‘s well-being using our Star Chart metric. According to our analysis, CREDIT ACCEPTANCE has earned a high health rating of 9/10 with regard to its cashflows and debt, suggesting it is financially capable to safely ride out any crisis without the risk of bankruptcy. We also examined CREDIT ACCEPTANCE’s performance in various areas of growth, asset, profitability and dividend. We found that the company was strong in asset, medium in growth, profitability and weak in dividend. This classification has led us to conclude that CREDIT ACCEPTANCE is an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Given the financial strength of CREDIT ACCEPTANCE, we believe that investors who are looking for a long-term, stable investment opportunity would find this company highly appealing. Investors who are looking for more short-term financial gains may also be interested due to the company’s high health rating and strong asset base. More…
Peers
The company has been in business for over 40 years and has a long history of helping people get the financing they need. The company’s main competitors are Shriram Transport Finance Co Ltd, Consumer Portfolio Services Inc, and Singapura Finance Ltd. All of these companies are similar to Credit Acceptance Corp in that they provide financing to people with bad credit.
However, each company has its own unique history and approach to business.
– Shriram Transport Finance Co Ltd ($BSE:511218)
Shriram Transport Finance Co Ltd is one of India’s leading providers of financing solutions for the transport sector. The company has a market cap of 326.73B as of 2022 and a Return on Equity of 11.6%. STFC has a strong focus on the trucking industry and has a diversified portfolio of products and services that cater to the needs of its customers. The company has a wide network of branches across India and is well-positioned to capitalize on the growing demand for transport financing in the country.
– Consumer Portfolio Services Inc ($NASDAQ:CPSS)
Founded in 1991, Consumer Portfolio Services, Inc. is a provider of indirect automobile financing solutions in the United States. The company operates in two segments, Consumer Loans and Dealer Loans. The Consumer Loans segment offers loans to purchase vehicles through a network of automobile dealerships that sell used vehicles to consumers with limited access to automotive financing. The Dealer Loans segment provides inventory financing to a network of automobile dealerships.
– Singapura Finance Ltd ($SGX:S23)
Singapura Finance Ltd is a finance company that provides a range of financial services to individuals and businesses in Singapore. The company has a market capitalization of 115.84 million as of 2022 and a return on equity of 2.69%. Singapura Finance Ltd offers a range of services including personal loans, home loans, credit cards, and investment products. The company has a strong focus on providing excellent customer service and offering competitive rates and products.
Summary
Credit Acceptance recently announced the extension of their revolving secured warehouse facility, providing investors with a stable and reliable source of funding to invest in. The facility is secured by the company’s accounts receivable and provides investors with access to a diversified and secure portfolio of loans. This extension will enable investors to benefit from low-cost funding while providing Credit Acceptance with additional liquidity.
Investors will have the opportunity to earn attractive returns through the purchase of secured loan investments, in addition to enjoying the security of their capital. This extension will further enable Credit Acceptance to strengthen their position in the market and increase its ability to meet customer and investor needs.
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