WORLD ACCEPTANCE CORP

Analysis for Ticker: WRLD

World Acceptance Corp operates a network of over one thousand physical branches in sixteen states to lend cash to individuals with limited access to traditional credit. The business is a simple mathematical trap where they feed subprime consumers installment loans at an average annual interest rate of 50,3%. When you lend money to people who have no money they do not pay it back which is why the company provisioned 169,2$ million for credit losses in fiscal 2025 as borrowers default at a rate of 17,5%. To survive the company borrows heavily carrying 446,9$ million in debt by 05/2025 which creates a precise debt to equity ratio of 1.0 to 1.0. The current math is a disaster because the company is borrowing money at high interest rates from banks just to fund loans that are almost guaranteed to fail while the people running the company empty the cash register to pay themselves before the walls close in.