Credit Acceptance (Credit Acceptance) Cash Conversion Cycle : -160.54 (As of Mar. 2024)

View and export this data going back to 1992. Start your Free Trial

What is Credit Acceptance Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Credit Acceptance's Days Sales Outstanding for the three months ended in Mar. 2024 was 0.
Credit Acceptance's Days Inventory for the three months ended in Mar. 2024 was 0.
Credit Acceptance's Days Payable for the three months ended in Mar. 2024 was 160.54.
Therefore, Credit Acceptance's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was -160.54.

Credit Acceptance Cash Conversion Cycle Historical Data

The historical data trend for Credit Acceptance's Cash Conversion Cycle 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 Cash Conversion Cycle Chart

Credit Acceptance Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

Get a 7-Day Free Trial

-170.84

-172.29

-156.76

-167.44

-171.33

Credit Acceptance Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash Conversion Cycle	Get a 7-Day Free Trial															-158.12	-155.49	-162.43	-170.32	-160.54

Competitive Comparison of Credit Acceptance's Cash Conversion Cycle

For the Credit Services subindustry, Credit Acceptance's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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 Cash Conversion Cycle Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Credit Acceptance's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Credit Acceptance's Cash Conversion Cycle falls into.

Credit Acceptance Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Credit Acceptance's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	0	+	0	-	171.33
	=	-171.33

Credit Acceptance's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	0	+	0	-	160.54
	=	-160.54

Credit Acceptance (NAS:CACC) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

Credit Acceptance Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Credit Acceptance's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.

Credit Acceptance (Credit Acceptance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Credit Acceptance Corp (NAS:CACC) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

CRDA34:Brazil

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.

Executives

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