Over the past three months, shares of Camping World Holdings Inc. (NYSE:CWH) fell by 19.12%. When understanding a companies price change over a time period like 3 months, it could be helpful to look at its financials. One key aspect of a companies financials is its debt, but before we understand the importance of debt, let's look at how much debt Camping World Holdings has.

Camping World Holdings Debt

According to the Camping World Holdings's most recent balance sheet as reported on November 2, 2022, total debt is at $2.42 billion, with $1.48 billion in long-term debt and $937.48 million in current debt. Adjusting for $148.24 million in cash-equivalents, the company has a net debt of $2.27 billion.

Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents includes cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Why Debt Is Important

Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.

However, due to interest-payment obligations, cash-flow of a company can be impacted. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.