EX-12 3 cacc-20171231xex12.htm EXHIBIT 12 Exhibit


EXHIBIT 12

CREDIT ACCEPTANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratios)
For the Years Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
Earnings Available for Fixed Charges
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
$
583.8

 
$
531.2

 
$
474.5

 
$
420.9

 
$
398.2

Add fixed charges included in earnings:
 
 
 
 
 
 
 
 
 
Interest expense
120.2

 
97.7

 
76.0

 
56.7

 
65.0

Interest element of rentals
0.6

 
0.5

 
0.5

 
0.5

 
0.4

Total fixed charges (1)
$
120.8

 
$
98.2

 
$
76.5

 
$
57.2

 
$
65.4

 
 
 
 
 
 
 
 
 
 
Total earnings available for fixed charges
$
704.6

 
$
629.4

 
$
551.0

 
$
478.1

 
$
463.6

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
5.8

 
6.4

 
7.2

 
8.4

 
7.1

 
 
 
 
 
 
 
 
 
 
(1) “Fixed charges” are defined as interest on borrowings (whether expensed or capitalized) and the portion of rental and operating lease expenses applicable to interest.