Ability Enterprise Co (TPE:2374) Effective Interest Rate on Debt %: 2.46% (As of Mar. 2026)

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TPE:2374 Ability Enterprise Co Ltd TPE:2374
83 GF Score
Price NT$59.60
GF Value NT$85.40
Valuation Possible Value Trap
! 3 Warning Signs
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What is Ability Enterprise Co Effective Interest Rate on Debt %?

Ability Enterprise Co TPE:2374 -4.79% 83 Effective Interest Rate on Debt % is 2.46% as of Mar. 2026. GuruFocus rates TPE:2374 with a GF Score™ of 83/100 and a GF Value™ of NT$85.40 (Possible Value Trap). 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. Ability Enterprise Co's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was NT$17 Mil. Ability Enterprise Co's average total debt for the quarter that ended in Mar. 2026 was NT$676 Mil. Therefore, Ability Enterprise Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.46%.


Ability Enterprise Co  (TPE:2374) Effective Interest Rate on Debt % Explanation

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


Ability Enterprise Co Effective Interest Rate on Debt % Related Terms


Ability Enterprise Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Ability Enterprise 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.

Ability Enterprise Co Effective Interest Rate on Debt % Chart

Ability Enterprise 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 1.17 1.68 2.44 2.49 2.17

Ability Enterprise Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 2.59 2.60 2.45 2.61 2.46

TPE:2374 vs APH, GLW, TEL: Effective Interest Rate on Debt % Comparison

For the Electronic Components subindustry, Ability Enterprise 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.


Ability Enterprise Co Effective Interest Rate on Debt % vs Hardware Industry

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

* The bar in red indicates where Ability Enterprise Co's Effective Interest Rate on Debt % falls into.


TPE:2374
83GF Score
Ability Enterprise Co Ltd TPE:2374
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ability Enterprise Co Effective Interest Rate on Debt % Calculation

Ability Enterprise 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  *  -10.038/( (373.397+550.324)/ 2 )
=-1  *  -10.038/461.8605
=2.17 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=18.634 + 354.763
=373.397

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10.691 + 539.633
=550.324

Ability Enterprise Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -16.608/( (550.324+801.655)/ 2 )
=-1  *  -16.608/675.9895
=2.46 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10.691 + 539.633
=550.324

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=276.214 + 525.441
=801.655

* 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 2.46% mean?
Ability Enterprise Co (TPE:2374) has a Effective Interest Rate on Debt % of 2.46% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Ability Enterprise Co and its competitors.
Is Ability Enterprise Co's Effective Interest Rate on Debt % too high?
Ability Enterprise Co's current Effective Interest Rate on Debt % is 2.46%. Overall, Ability Enterprise Co has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ability Enterprise Co's Effective Interest Rate on Debt % compare to APH and GLW?
Ability Enterprise Co's Effective Interest Rate on Debt % of 2.46% 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 Ability Enterprise Co and its competitors. Ability Enterprise Co's current Effective Interest Rate on Debt % is 2.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ability Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Ability Enterprise Co (TPE:2374) is currently considered Possible Value Trap. The stock's GF Value™ is NT$85.40, compared to a current price of NT$59.60 — trading 30.2% below its estimated fair value. The current Effective Interest Rate on Debt % is 2.46%. Ability Enterprise Co's overall GF Score™ is 83/100 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 Ability Enterprise Co (TPE:2374), the current Effective Interest Rate on Debt % is 2.46% 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 Ability Enterprise Co (TPE:2374) Overvalued in 2026?

Based on GuruFocus' analysis, Ability Enterprise Co stock appears to be undervalued. The current stock price of NT$59.60 is trading 30.2% below its estimated GF Value™ of NT$85.40. GuruFocus considers Ability Enterprise Co to be Possible Value Trap.

Key valuation signals for TPE:2374:

  • Effective Interest Rate on Debt %: 2.46%
  • GF Value™: NT$85.40 vs. price of NT$59.60 (30.2% below fair value)
  • GF Score™: 83/100 with 3 warning signs

No single metric tells the full story. See the TPE:2374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ability Enterprise Co Business Description

Address No. 200, Zhonghuan Road, Section 3, Xinzhuang District, New Taipei City, TWN, 242030
Ability Enterprise Co Ltd is mainly engaged in the manufacturing, purchases and sales of digital cameras, optical product components and film/video accessories. The Company's main activities are the manufacturing and sales of optical products, and the strategic investing segment focuses on sales of design and manufacturing of optical elements. It specializes in integrating optics, mechanics, acoustics, electronics, and software. Its product portfolio includes security equipment, home appliances, machine vision systems, video live streaming systems, cloud-based solutions, and automotive imaging applications. Its segments are the optical manufacturing segment, which generates maximum revenue, and the strategic investing segment. The Company generates maximum revenue from Japan.
83GF Score

Get the complete analysis for TPE:2374

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

NT$59.60
Price
NT$85.40
GF Value