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. Danaos's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $47 Mil. Danaos's average total debt for the quarter that ended in Mar. 2026 was $1,090 Mil. Therefore, Danaos's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.35%.
Danaos (NYSE:DAC) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Danaos Effective Interest Rate on Debt % Related Terms
Danaos Effective Interest Rate on Debt % Historical Data
* Premium members only.
The historical data trend for Danaos'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.
DAC vs NMM, SBLK, CMRE: Effective Interest Rate on Debt % Comparison
For the Marine Shipping subindustry, Danaos'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.
Danaos Effective Interest Rate on Debt % vs Transportation Industry
For the Transportation industry and Industrials sector, Danaos's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Danaos's Effective Interest Rate on Debt % falls into.
* 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 four times the quarterly (Mar. 2026) 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 4.35% mean?
Danaos (DAC) has a Effective Interest Rate on Debt % of 4.35% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Danaos and its competitors.
Is Danaos' Effective Interest Rate on Debt % too high?
Danaos' current Effective Interest Rate on Debt % is 4.35%. Overall, Danaos has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Danaos' Effective Interest Rate on Debt % compare to NMM and SBLK?
Danaos' Effective Interest Rate on Debt % of 4.35% can be compared against companies in the Transportation 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 Transportation company?
A good Effective Interest Rate on Debt % depends on the Transportation 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 Danaos and its competitors. Danaos's current Effective Interest Rate on Debt % is 4.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Danaos stock overvalued right now?
Based on GuruFocus' analysis, Danaos (DAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $91.21, compared to a current price of $122.32 — trading 34.1% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.35%. Danaos' overall GF Score™ is 81/100 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 Danaos (DAC), the current Effective Interest Rate on Debt % is 4.35% as of Mar. 2026. 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 Danaos (DAC) Overvalued in 2026?
Based on GuruFocus' analysis, Danaos stock appears to be overvalued.
The current stock price of $122.32 is trading 34.1% above its estimated GF Value™ of $91.21.
GuruFocus considers Danaos to be Significantly Overvalued.
Key valuation signals for DAC:
Effective Interest Rate on Debt %: 4.35%
GF Value™: $91.21 vs. price of $122.32 (34.1% above fair value)
No single metric tells the full story. See the DAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Danaos Corp is an international owner of containerships. It provides international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customers include HMM, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Sealead, Niledutch, Samudera, OSC, and Arkas. Geographically, the company operates in Australia, Asia, Europe, and America, with maximum revenue from the Australia-Asia region. It has two reporting segments: Container vessels and Drybulk vessels segment. It generates the majority of its revenue from Container vessels.
81GF Score
Get the complete analysis for DAC
Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DAC has been successfully added to your 
