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Credit Acceptance Corporation (CACC-3.64%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, reporting a net income of $247.9 million, compared to $286.1 million in the previous year. The decrease in net income is attributed to increases in interest expense and provision for credit losses.
Finance charges increased by 13.5% to $1,992.7 million, primarily due to an increase in the average net loans receivable balance. The average yield on the loan portfolio remained consistent at 26.5%.
Operating expenses rose by 9.2% to $501.5 million, driven by increases in salaries and wages, general and administrative expenses, and sales and marketing expenses.
The provision for credit losses increased by 10.7% to $814.7 million, mainly due to a greater decline in forecasted collection rates and slower net cash flow timing.
Interest expense increased by 57.4% to $419.5 million, primarily due to higher interest rates on recent financings and an increase in the average outstanding debt balance.
Credit Acceptance Corporation's total assets increased to $8,854.6 million, with total liabilities rising to $7,105.0 million. Shareholders' equity stood at $1,749.6 million.
The company reported cash and cash equivalents of $343.7 million as of December 31, 2024, with unused and available lines of credit amounting to $1,734.9 million.
Credit Acceptance Corporation continues to focus on providing financing solutions to automobile dealers, enabling them to sell vehicles to consumers regardless of their credit history.
The filing also details the company's financing programs, including the Portfolio Program and the Purchase Program, and their impact on the company's financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Credit Acceptance Corporation annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.