Solution Dynamics (NZSE:SDL) Effective Interest Rate on Debt %: 6.42% (As of Dec. 2025)

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NZSE:SDL Solution Dynamics Ltd NZSE:SDL
64 GF Score
Price NZ$0.58
GF Value NZ$0.99
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Solution Dynamics Effective Interest Rate on Debt %?

Solution Dynamics NZSE:SDL 64 Effective Interest Rate on Debt % is 6.42% as of Dec. 2025. GuruFocus rates NZSE:SDL with a GF Score™ of 64/100 and a GF Value™ of NZ$0.99 (Significantly 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. Solution Dynamics's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was NZ$0.09 Mil. Solution Dynamics's average total debt for the quarter that ended in Dec. 2025 was NZ$1.40 Mil. Therefore, Solution Dynamics's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 6.42%.


Solution Dynamics  (NZSE:SDL) Effective Interest Rate on Debt % Explanation

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


Solution Dynamics Effective Interest Rate on Debt % Related Terms


Solution Dynamics Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Solution Dynamics'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.

Solution Dynamics Effective Interest Rate on Debt % Chart

Solution Dynamics 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 4.87 2.44 0.63 0.69 5.87

Solution Dynamics 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 0.00 12.32 0.00 13.23 6.42

NZSE:SDL vs QH, SHOP, UBER: Effective Interest Rate on Debt % Comparison

For the Software - Application subindustry, Solution Dynamics'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.


Solution Dynamics Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Solution Dynamics's Effective Interest Rate on Debt % distribution charts can be found below:

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


NZSE:SDL
64GF Score
Solution Dynamics Ltd NZSE:SDL
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Solution Dynamics Effective Interest Rate on Debt % Calculation

Solution Dynamics'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  *  -0.094/( (1.815+1.387)/ 2 )
=-1  *  -0.094/1.601
=5.87 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.08 + 0.735
=1.815

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.652 + 0.735
=1.387

Solution Dynamics'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  *  -0.09/( (1.387+1.417)/ 2 )
=-1  *  -0.09/1.402
=6.42 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.652 + 0.735
=1.387

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.682 + 0.735
=1.417

* 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 6.42% mean?
Solution Dynamics (NZSE:SDL) has a Effective Interest Rate on Debt % of 6.42% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Solution Dynamics and its competitors.
Is Solution Dynamics' Effective Interest Rate on Debt % too high?
Solution Dynamics' current Effective Interest Rate on Debt % is 6.42%. Overall, Solution Dynamics has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Effective Interest Rate on Debt % compare to QH and SHOP?
Solution Dynamics' Effective Interest Rate on Debt % of 6.42% can be compared against companies in the Software 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 Software company?
A good Effective Interest Rate on Debt % depends on the Software 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 Solution Dynamics and its competitors. Solution Dynamics's current Effective Interest Rate on Debt % is 6.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.58 — trading 41.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 6.42%. Solution Dynamics' overall GF Score™ is 64/100 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 Solution Dynamics (NZSE:SDL), the current Effective Interest Rate on Debt % is 6.42% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?

Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued. The current stock price of NZ$0.58 is trading 41.4% below its estimated GF Value™ of NZ$0.99. GuruFocus considers Solution Dynamics to be Significantly Undervalued.

Key valuation signals for NZSE:SDL:

  • Effective Interest Rate on Debt %: 6.42%
  • GF Value™: NZ$0.99 vs. price of NZ$0.58 (41.4% below fair value)
  • GF Score™: 64/100 with 3 warning signs

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


Solution Dynamics Business Description

Address 18 Canaveral Drive, PO Box 301248, Albany, Auckland, NZL, 0752
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
64GF Score

Get the complete analysis for NZSE:SDL

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

NZ$0.58
Price
NZ$0.99
GF Value