Spark New Zealand (ASX:SPK) Effective Interest Rate on Debt %: 3.40% (As of Dec. 2025)


ASX:SPK Spark New Zealand Ltd ASX:SPK
72 GF Score
Price A$1.53
GF Value A$2.65
Valuation Significantly Undervalued
! 8 Warning Signs
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What is Spark New Zealand Effective Interest Rate on Debt %?

Spark New Zealand ASX:SPK -0.33% 72 Effective Interest Rate on Debt % is 3.40% as of Dec. 2025. GuruFocus rates ASX:SPK with a GF Score™ of 72/100 and a GF Value™ of A$2.65 (Significantly Undervalued). The stock has 8 warning signs 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. Spark New Zealand's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was A$71 Mil. Spark New Zealand's average total debt for the quarter that ended in Dec. 2025 was A$2,098 Mil. Therefore, Spark New Zealand's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 3.40%.


Spark New Zealand  (ASX:SPK) Effective Interest Rate on Debt % Explanation

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


Spark New Zealand Effective Interest Rate on Debt % Related Terms


Spark New Zealand Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Spark New Zealand'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.

Spark New Zealand Effective Interest Rate on Debt % Chart

Spark New Zealand Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.40 2.53 2.88 4.22 4.17

Spark New Zealand Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % 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 6.02 2.10 3.65 4.05 3.40

ASX:SPK vs TMUS, VZ, T: Effective Interest Rate on Debt % Comparison

For the Telecom Services subindustry, Spark New Zealand'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.


Spark New Zealand Effective Interest Rate on Debt % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Effective Interest Rate on Debt % distribution charts can be found below:

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


ASX:SPK
72GF Score
Spark New Zealand Ltd ASX:SPK
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Spark New Zealand Effective Interest Rate on Debt % Calculation

Spark New Zealand'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  *  -90.844/( (2182.73+2177.468)/ 2 )
=-1  *  -90.844/2180.099
=4.17 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1711.238 + 471.492
=2182.73

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1696.367 + 481.101
=2177.468

Spark New Zealand'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  *  -71.418/( (2177.468+2018.859)/ 2 )
=-1  *  -71.418/2098.1635
=3.40 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1696.367 + 481.101
=2177.468

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1497.161 + 521.698
=2018.859

* 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 3.40% mean?
Spark New Zealand (ASX:SPK) has a Effective Interest Rate on Debt % of 3.40% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Spark New Zealand and its competitors.
Is Spark New Zealand's Effective Interest Rate on Debt % too high?
Spark New Zealand's current Effective Interest Rate on Debt % is 3.40%. Overall, Spark New Zealand has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Effective Interest Rate on Debt % compare to TMUS and VZ?
Spark New Zealand's Effective Interest Rate on Debt % of 3.40% can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Effective Interest Rate on Debt % depends on the Telecommunication Services 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 Spark New Zealand and its competitors. Spark New Zealand's current Effective Interest Rate on Debt % is 3.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.65, compared to a current price of A$1.53 — trading 42.5% below its estimated fair value. The current Effective Interest Rate on Debt % is 3.40%. Spark New Zealand's overall GF Score™ is 72/100 with 8 warning signs 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 Spark New Zealand (ASX:SPK), the current Effective Interest Rate on Debt % is 3.40% 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.

Is Spark New Zealand (ASX:SPK) Overvalued in 2026?

Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued. The current stock price of A$1.53 is trading 42.5% below its estimated GF Value™ of A$2.65. GuruFocus considers Spark New Zealand to be Significantly Undervalued.

Key valuation signals for ASX:SPK:

  • Effective Interest Rate on Debt %: 3.40%
  • GF Value™: A$2.65 vs. price of A$1.53 (42.5% below fair value)
  • GF Score™: 72/100 with 8 warning signs

No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Spark New Zealand Business Description

Address 50 Albert Street, Spark City, Level 1, Private Bag 92028, Auckland, NTL, NZL, 1010
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
72GF Score

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

A$1.53
Price
A$2.65
GF Value