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Camping World Holdings (FRA:C83) Financial Strength : 3 (As of Sep. 2024)


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What is Camping World Holdings Financial Strength?

Camping World Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Camping World Holdings Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Camping World Holdings's Interest Coverage for the quarter that ended in Sep. 2024 was 1.09. Camping World Holdings's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.52. As of today, Camping World Holdings's Altman Z-Score is 1.74.


Competitive Comparison of Camping World Holdings's Financial Strength

For the Auto & Truck Dealerships subindustry, Camping World Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Vehicles & Parts Industry

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

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



Camping World Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Camping World Holdings's Interest Expense for the months ended in Sep. 2024 was €-52 Mil. Its Operating Income for the months ended in Sep. 2024 was €57 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was €2,208 Mil.

Camping World Holdings's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*57.423/-52.482
=1.09

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Camping World Holdings Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Camping World Holdings's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1010.51 + 2207.963) / 6216.856
=0.52

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Camping World Holdings has a Z-score of 1.74, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.74 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Camping World Holdings  (FRA:C83) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Camping World Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Camping World Holdings Financial Strength Related Terms

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Camping World Holdings Business Description

Traded in Other Exchanges
Address
2 Marriott Drive, Lincolnshire, IL, USA, 60069
Camping World Holdings Inc is retailer of RVs and related products and services. The Company has the two reportable segments: 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. 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.

Camping World Holdings Headlines

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