Terra Drone (FRA:KZ8) Effective Interest Rate on Debt %: 9.79% (As of Jan. 2026)

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FRA:KZ8 Terra Drone Corp FRA:KZ8
20 GF Score
Price €70.60
! 6 Warning Signs
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What is Terra Drone Effective Interest Rate on Debt %?

Terra Drone FRA:KZ8 20 Effective Interest Rate on Debt % is 9.79% as of Jan. 2026. GuruFocus rates FRA:KZ8 with a GF Score™ of 20/100. The stock has 6 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. Terra Drone's annualized positive value of Interest Expense for the quarter that ended in Jan. 2026 was €44 Mil. Terra Drone's average total debt for the quarter that ended in Jan. 2026 was €451 Mil. Therefore, Terra Drone's annualized Effective Interest Rate on Debt % for the quarter that ended in Jan. 2026 was 9.79%.


Terra Drone  (FRA:KZ8) Effective Interest Rate on Debt % Explanation

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


Terra Drone Effective Interest Rate on Debt % Related Terms


Terra Drone Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Terra Drone'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.

Terra Drone Effective Interest Rate on Debt % Chart

Terra Drone Annual Data
Trend Jan23 Jan24 Jan25 Jan26
Effective Interest Rate on Debt %
1.69 2.54 2.60 5.56

Terra Drone Quarterly Data
Jan23 Jan24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only 0.00 0.00 97.28 9.79 10.66

FRA:KZ8 vs SPCX, GE, RTX: Effective Interest Rate on Debt % Comparison

For the Aerospace & Defense subindustry, Terra Drone'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.


Terra Drone Effective Interest Rate on Debt % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Terra Drone's Effective Interest Rate on Debt % distribution charts can be found below:

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


FRA:KZ8
20GF Score
Terra Drone Corp FRA:KZ8
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Terra Drone Effective Interest Rate on Debt % Calculation

Terra Drone's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jan. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jan. 2025 )+Total Debt  (A: Jan. 2026 ))/ count )
=-1  *  -33.975/( (770.316+451.034)/ 2 )
=-1  *  -33.975/610.675
=5.56 %

where

Total Debt  (A: Jan. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=527.034 + 243.282
=770.316

Total Debt  (A: Jan. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=141.93 + 309.104
=451.034

Terra Drone's annualized Effective Interest Rate on Debt % for the quarter that ended in Jan. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Oct. 2025 )+Total Debt  (Q: Jan. 2026 ))/ count )
=-1  *  -44.136/( (0+451.034)/ 1 )
=-1  *  -44.136/451.034
=9.79 %

where

Total Debt  (Q: Jan. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=141.93 + 309.104
=451.034

* 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 (Jan. 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 9.79% mean?
Terra Drone (FRA:KZ8) has a Effective Interest Rate on Debt % of 9.79% as of Jan. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Terra Drone and its competitors.
Is Terra Drone's Effective Interest Rate on Debt % too high?
Terra Drone's current Effective Interest Rate on Debt % is 9.79%. Overall, Terra Drone has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Terra Drone's Effective Interest Rate on Debt % compare to SPCX and GE?
Terra Drone's Effective Interest Rate on Debt % of 9.79% can be compared against companies in the Aerospace & Defense 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 an Aerospace & Defense company?
A good Effective Interest Rate on Debt % depends on the Aerospace & Defense 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 Terra Drone and its competitors. Terra Drone's current Effective Interest Rate on Debt % is 9.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terra Drone stock overvalued right now?
Terra Drone (FRA:KZ8) has a current Effective Interest Rate on Debt % of 9.79%. The current Effective Interest Rate on Debt % is 9.79%. Terra Drone's overall GF Score™ is 20/100 with 6 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 Terra Drone (FRA:KZ8), the current Effective Interest Rate on Debt % is 9.79% as of Jan. 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.

Terra Drone Business Description

Other Exchanges 278A:Japan
Address 2-12-19 Shibuya, Token International Building 3rd Floor, Shibuya-ku, Tokyo, JPN, 150-0002
Terra Drone Corp is engaged in developing hardware and software for drones for surveying, inspection, and agriculture, providing related services, and developing and providing systems for managing the safe and efficient operation of drones and flying cars (UTM).
20GF 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.

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