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Camping World Holdings (Camping World Holdings) Degree of Financial Leverage : 1.85 (As of Mar. 2024)


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What is Camping World Holdings Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Camping World Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was 1.85. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Camping World Holdings's Degree of Financial Leverage or its related term are showing as below:

CWH's Degree of Financial Leverage is ranked worse than
81.34% of 1270 companies
in the Vehicles & Parts industry
Industry Median: 0.98 vs CWH: 1.85

Camping World Holdings Degree of Financial Leverage Historical Data

The historical data trend for Camping World Holdings's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Camping World Holdings Degree of Financial Leverage Chart

Camping World Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.35 -0.11 1.39 1.62 1.59

Camping World Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.54 1.63 1.73 1.59 1.85

Competitive Comparison of Camping World Holdings's Degree of Financial Leverage

For the Auto & Truck Dealerships subindustry, Camping World Holdings's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Camping World Holdings's Degree of Financial Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Camping World Holdings's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Camping World Holdings's Degree of Financial Leverage falls into.



Camping World Holdings Degree of Financial Leverage Calculation

Camping World Holdings's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -0.04 (Mar. 2024) / 2.24 (Mar. 2023) - 1 )/( 214.776 (Mar. 2024) / 476.088 (Mar. 2023) - 1 )
=-1.0179/-0.5489
=1.85***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Camping World Holdings  (NYSE:CWH) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


Camping World Holdings Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Camping World Holdings's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Camping World Holdings (Camping World Holdings) Business Description

Traded in Other Exchanges
Address
250 Parkway Drive, Suite 270, Lincolnshire, IL, USA, 60069
Camping World Holdings Inc is retailer of RVs and related products and services. The Company has the two reportable segments 1) Good Sam Services and Plans segment includes sale of emergency roadside assistance plans; commissions on property and casualty insurance programs; travel assist programs; extended vehicle service contracts; vehicle financing and refinancing assistance; consumer shows and events; and consumer publications and directories. 2) RV and Outdoor Retail segment includes the sale of new and used RVs; commissions on the finance and insurance contracts related to the sale of RVs; the sale of RV service and collision work; the sale of RV parts, accessories, sale of outdoor products, equipment, gear and supplies; business to business distribution of RV furniture, etc.
Executives
Thomas E Kirn officer: Chief Accounting Officer C/O CAMPING WORLD, INC., 250 PARKWAY DRIVE, SUITE 270, LINCOLNSHIRE IL 60048
Lindsey Christen officer: See Remarks C/O CAMPING WORLD, INC., 250 PARKWAY DRIVE, SUITE 270, LINCOLNSHIRE IL 60048
Kent Dillon Schickli director
Marcus Lemonis director, 10 percent owner, officer: Chief Executive Officer 200 EAST BROWARD SUITE 920, FT LAUDERDALE FL 33301
Karin L Bell officer: Chief Financial Officer C/O CAMPING WORLD HOLDINGS, INC., 250 PARKWAY DRIVE, SUITE 270, LINCOLNSHIRE IL 60048
Matthew D Wagner officer: EXECUTIVE VICE PRESIDENT C/O CAMPING WORLD HOLDINGS, INC., 250 PARKWAY DRIVE, SUITE 270, LINCOLNSHIRE IL 60069
Crestview Partners Ii Gp, L.p. director, 10 percent owner 590 MADISON AVENUE, 42ND FLOOR, NEW YORK NY 10022
Tamara Ward officer: CHIEF OPERATING OFFICER C/O CAMPING WORLD HOLDINGS, INC., 250 PARKWAY DRIVE, SUITE 270, LINCOLNSHIRE IL 60069
Mary J George director C/O LATHAM & WATKINS LLP, 650 TOWN CENTER DRIVE, 20TH FL, COSTA MESA CA 92626
Michael W Malone director
Stephen Adams director
Abrams Capital Management, L.p. 10 percent owner 222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital, Llc 10 percent owner 222 BERKELEY ST., 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, Llc 10 percent owner 222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
David C Abrams 10 percent owner 222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116