HNHAY (Hon Hai Precision Industry Co) Effective Interest Rate on Debt %: 3.78% (As of Dec. 2025)

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What is Hon Hai Precision Industry Co Effective Interest Rate on Debt %?

Hon Hai Precision Industry Co HNHAY 90 Effective Interest Rate on Debt % is 3.78% as of Dec. 2025. GuruFocus rates HNHAY with a GF Score™ of 90/100. 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. Hon Hai Precision Industry Co's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was $1,539.23 Mil. Hon Hai Precision Industry Co's average total debt for the quarter that ended in Dec. 2025 was $40,730.82 Mil. Therefore, Hon Hai Precision Industry Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 3.78%.


Hon Hai Precision Industry Co  (OTCPK:HNHAY) Effective Interest Rate on Debt % Explanation

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


Hon Hai Precision Industry Co Effective Interest Rate on Debt % Related Terms


Hon Hai Precision Industry Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Hon Hai Precision Industry Co'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.

Hon Hai Precision Industry Co Effective Interest Rate on Debt % Chart

Hon Hai Precision Industry Co 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 2.67 3.51 6.77 3.78 3.44

Hon Hai Precision Industry Co 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 3.42 2.91 3.54 3.49 3.78

HNHAY vs APH, GLW, TEL: Effective Interest Rate on Debt % Comparison

For the Electronic Components subindustry, Hon Hai Precision Industry Co'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.


Hon Hai Precision Industry Co Effective Interest Rate on Debt % vs Hardware Industry

For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Hon Hai Precision Industry Co's Effective Interest Rate on Debt % falls into.



Hon Hai Precision Industry Co Effective Interest Rate on Debt % Calculation

Hon Hai Precision Industry Co'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  *  -1215.107/( (29518.928+41033.458)/ 2 )
=-1  *  -1215.107/35276.193
=3.44 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=9569.316 + 19949.612
=29518.928

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10743.259 + 30290.199
=41033.458

Hon Hai Precision Industry Co'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  *  -1539.228/( (40428.177+41033.458)/ 2 )
=-1  *  -1539.228/40730.8175
=3.78 %

where

Total Debt  (Q: Sep. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=9809.38 + 30618.797
=40428.177

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10743.259 + 30290.199
=41033.458

* 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 3.78% mean?
Hon Hai Precision Industry Co (HNHAY) has a Effective Interest Rate on Debt % of 3.78% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hon Hai Precision Industry Co and its competitors.
Is Hon Hai Precision Industry Co's Effective Interest Rate on Debt % too high?
Hon Hai Precision Industry Co's current Effective Interest Rate on Debt % is 3.78%. Overall, Hon Hai Precision Industry Co has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's Effective Interest Rate on Debt % compare to APH and GLW?
Hon Hai Precision Industry Co's Effective Interest Rate on Debt % of 3.78% can be compared against companies in the Hardware 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 Hardware company?
A good Effective Interest Rate on Debt % depends on the Hardware 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 Hon Hai Precision Industry Co and its competitors. Hon Hai Precision Industry Co's current Effective Interest Rate on Debt % is 3.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Hon Hai Precision Industry Co (HNHAY) has a current Effective Interest Rate on Debt % of 3.78%. The current Effective Interest Rate on Debt % is 3.78%. Hon Hai Precision Industry Co's overall GF Score™ is 90/100 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 Hon Hai Precision Industry Co (HNHAY), the current Effective Interest Rate on Debt % is 3.78% 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.

Hon Hai Precision Industry Co Business Description

Address 236 No. 2, Ziyou Street, Tucheng District, New Taipei, TWN, 236
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.