Carma (ASX:CMA) Effective Interest Rate on Debt %: 119.92% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:CMA Carma Ltd ASX:CMA
9 GF Score
Price A$0.83
! 1 Warning Sign
View Full Analysis

What is Carma Effective Interest Rate on Debt %?

Carma ASX:CMA -12.17% 9 Effective Interest Rate on Debt % is 119.92% as of Dec. 2025. GuruFocus rates ASX:CMA with a GF Score™ of 9/100. The stock has 1 warning sign investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Carma's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was A$20.57 Mil. Carma's average total debt for the quarter that ended in Dec. 2025 was A$17.15 Mil. Therefore, Carma's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 119.92%.

Carma  (ASX:CMA) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Carma Effective Interest Rate on Debt % Related Terms

Carma Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Carma's Effective Interest Rate on Debt % 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.

Carma Effective Interest Rate on Debt % Chart

Carma Annual Data
Trend Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
0.00 0.00 32.54

Carma Semi-Annual Data
Jun23 Jun24 Jun25 Dec25
Effective Interest Rate on Debt % 0.00 0.00 0.00 119.92

ASX:CMA vs CVNA, PAG, ALTB: Effective Interest Rate on Debt % Comparison

For the Auto & Truck Dealerships subindustry, Carma's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.

Carma Effective Interest Rate on Debt % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Carma's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Carma's Effective Interest Rate on Debt % falls into.


ASX:CMA
9GF Score
Carma Ltd ASX:CMA
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Carma Effective Interest Rate on Debt % Calculation

Carma's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -4.1/( (0+12.6)/ 1 )
=-1  *  -4.1/12.6
=32.54 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 0
=0

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=8.2 + 4.4
=12.6

Carma's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -20.566/( (12.6+21.699)/ 2 )
=-1  *  -20.566/17.1495
=119.92 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=8.2 + 4.4
=12.6

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=9.113 + 12.586
=21.699

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 119.92% mean?
Carma (ASX:CMA) has a Effective Interest Rate on Debt % of 119.92% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Carma and its competitors.
Is Carma's Effective Interest Rate on Debt % too high?
Carma's current Effective Interest Rate on Debt % is 119.92%. Overall, Carma has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Carma's Effective Interest Rate on Debt % compare to CVNA and PAG?
Carma's Effective Interest Rate on Debt % of 119.92% can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Vehicles & Parts company?
A good Effective Interest Rate on Debt % depends on the Vehicles & Parts industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Carma and its competitors. Carma's current Effective Interest Rate on Debt % is 119.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carma stock overvalued right now?
Carma (ASX:CMA) has a current Effective Interest Rate on Debt % of 119.92%. The current Effective Interest Rate on Debt % is 119.92%. Carma's overall GF Score™ is 9/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Carma (ASX:CMA), the current Effective Interest Rate on Debt % is 119.92% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Carma Business Description

Address 219-241 Cleveland Street, Suite 5.03, Strawberry Hills, Sydney, NSW, AUS, 2012
Carma Ltd is an online retailer of quality used cars in Australia. It offers an online platform that makes it easy to view a huge range of quality cars, compare them like-for-like, and pick and reserve a car online. The company offer fair pricing with no haggling, finance arrangements or cash payments, free delivery within Greater Sydney, and a 7-day trial period allowing customers to test the car in everyday life with the option to return it for a full refund if not satisfied.
9GF Score

Get the complete analysis for ASX:CMA

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.83
Price