Quick Ratio

The quick ratio measures a company's ability to cover its short-term debts using its most liquid assets — cash, marketable securities, and receivables.

At 0.06x, Credit Acceptance Corporation has only $0.06 in liquid assets for every $1 of current liabilities, indicating a very thin liquidity position. This is far below the sector median of 0.57x, and the company ranks in the 0th percentile among its Financial Services peers, meaning nearly all competitors have higher quick ratios. The year-over-year change is not available, but the quarter-over-quarter drop of -99.7% — from 19.29x to 0.06x — shows an abrupt collapse in liquidity. The combination of an extremely low level and a sharp decline implies elevated short-term risk, as the company could struggle to meet obligations without external financing or asset sales. This metric contradicts the overall NEUTRAL verdict because such a severe liquidity squeeze would normally warrant a bearish view, but the platform’s assessment may weigh other factors.

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