 Over the past three months, shares of Kamada Inc. NASDAQ: KMDA increased by 67.51. Before having a look at the importance of debt, lets look at how much debt Kamada has.Kamadas Debt According to the Kamadas most recent balance sheet as reported on February 26, 2020, total debt is at 746.00 thousand, with 257.00 thousand in long-term debt and 489.00 thousand in current debt. Adjusting for 42.66 million in cash-equivalents, the company has a net debt of -41.92 million.Shareholders look at the debt-ratio to understand how much financial leverage a company has. Kamada has 173.80 million in total assets, therefore making the debt-ratio 0.0. As a rule of thumb, a debt-ratio more than 1 indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 35 might be higher for one industry, whereas average for another.Why Shareholders Look At Debt? Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital.See more from Benzinga Recap: Kamada Q2 Earnings Earnings Scheduled For August 12, 2020 Kamadas Earnings: A PreviewC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 