China Automotive Systems (FRA:2IW) Effective Interest Rate on Debt %: 1.27% (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.

FRA:2IW China Automotive Systems Inc FRA:2IW
78 GF Score
Price €3.72
GF Value €4.42
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is China Automotive Systems Effective Interest Rate on Debt %?

China Automotive Systems FRA:2IW -1.59% 78 Effective Interest Rate on Debt % is 1.27% as of Dec. 2025. GuruFocus rates FRA:2IW with a GF Score™ of 78/100 and a GF Value™ of €4.42 (Modestly Undervalued). The stock has 3 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. China Automotive Systems's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was €1.6 Mil. China Automotive Systems's average total debt for the quarter that ended in Dec. 2025 was €124.0 Mil. Therefore, China Automotive Systems's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 1.27%.


China Automotive Systems  (FRA:2IW) Effective Interest Rate on Debt % Explanation

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


China Automotive Systems Effective Interest Rate on Debt % Related Terms


China Automotive Systems Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for China Automotive Systems'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.

China Automotive Systems Effective Interest Rate on Debt % Chart

China Automotive Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.17 1.15 0.74 1.19 0.86

China Automotive Systems Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 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 0.59 1.15 0.71 1.55 1.27

FRA:2IW vs INVZ, CVGI, SES: Effective Interest Rate on Debt % Comparison

For the Auto Parts subindustry, China Automotive Systems'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.


China Automotive Systems Effective Interest Rate on Debt % vs Vehicles & Parts Industry

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

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


FRA:2IW
78GF Score
China Automotive Systems Inc FRA:2IW
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Automotive Systems Effective Interest Rate on Debt % Calculation

China Automotive Systems's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -1.454/( (160.94+178.811)/ 2 )
=-1  *  -1.454/169.8755
=0.86 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.138 + 160.802
=160.94

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4.86 + 173.951
=178.811

China Automotive Systems'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: Sep. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -1.572/( (69.212+178.811)/ 2 )
=-1  *  -1.572/124.0115
=1.27 %

where

Total Debt  (Q: Sep. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0 + 69.212
=69.212

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4.86 + 173.951
=178.811

* 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 (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 1.27% mean?
China Automotive Systems (FRA:2IW) has a Effective Interest Rate on Debt % of 1.27% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on China Automotive Systems and its competitors.
Is China Automotive Systems' Effective Interest Rate on Debt % too high?
China Automotive Systems' current Effective Interest Rate on Debt % is 1.27%. Overall, China Automotive Systems has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Effective Interest Rate on Debt % compare to INVZ and CVGI?
China Automotive Systems' Effective Interest Rate on Debt % of 1.27% 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 China Automotive Systems and its competitors. China Automotive Systems's current Effective Interest Rate on Debt % is 1.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
Based on GuruFocus' analysis, China Automotive Systems (FRA:2IW) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.42, compared to a current price of €3.72 — trading 15.8% below its estimated fair value. The current Effective Interest Rate on Debt % is 1.27%. China Automotive Systems' overall GF Score™ is 78/100 with 3 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 China Automotive Systems (FRA:2IW), the current Effective Interest Rate on Debt % is 1.27% 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 China Automotive Systems (FRA:2IW) Overvalued in 2026?

Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued. The current stock price of €3.72 is trading 15.8% below its estimated GF Value™ of €4.42. GuruFocus considers China Automotive Systems to be Modestly Undervalued.

Key valuation signals for FRA:2IW:

  • Effective Interest Rate on Debt %: 1.27%
  • GF Value™: €4.42 vs. price of €3.72 (15.8% below fair value)
  • GF Score™: 78/100 with 3 warning signs

No single metric tells the full story. See the FRA:2IW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Automotive Systems Business Description

Other Exchanges CAAS:USA
Address No. 1 Henglong Road, Yu Qiao Development Zone, Shashi District, Hubei Province, Jing Zhou, CHN, 434000
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
78GF Score

Get the complete analysis for FRA:2IW

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

€3.72
Price
€4.42
GF Value