Debt-to-Equity Ratio

The Debt-to-Equity Ratio compares a company’s total liabilities to its shareholders’ equity, indicating how much debt it uses to finance its operations.

At 4.23x, Credit Acceptance carries $4.23 of debt for every dollar of equity, a level far above the Financial Services sector median of 0.71x and placing it in the 95th percentile among peers. Data for the year-over-year and quarter-over-quarter changes are not available, and the trend direction over the last eight quarters is similarly listed as N/A, limiting insight into recent shifts. The combination of a very high leverage level with no trend information makes it impossible to determine whether borrowing is increasing or decreasing, introducing uncertainty about near-term financial flexibility. This elevated debt load raises risk, as the company is more exposed to interest rate changes and earnings volatility. Therefore, this metric contradicts the overall NEUTRAL verdict by highlighting a potential downside risk that may warrant a more cautious view.

Frequently Asked Questions

Closest Sector Peers