TXRP (TX Rail Products) Effective Interest Rate on Debt %: 4.16% (As of Sep. 2019)

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.

What is TX Rail Products Effective Interest Rate on Debt %?

TX Rail Products TXRP Effective Interest Rate on Debt % is 4.16% as of Sep. 2019.

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. TX Rail Products's annualized positive value of Interest Expense for the quarter that ended in Sep. 2019 was $0.10 Mil. TX Rail Products's average total debt for the quarter that ended in Sep. 2019 was $2.50 Mil. Therefore, TX Rail Products's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2019 was 4.16%.

TX Rail Products  (OTCPK:TXRP) Effective Interest Rate on Debt % Explanation

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

TX Rail Products Effective Interest Rate on Debt % Related Terms

TX Rail Products Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for TX Rail Products'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.

TX Rail Products Effective Interest Rate on Debt % Chart

TX Rail Products Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.80 4.78 5.00 5.20 0.85

TX Rail Products Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Sep20
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 5.51 5.86 5.25 4.16 0.00

TXRP vs FAST, GWW, WSO: Effective Interest Rate on Debt % Comparison

For the Industrial Distribution subindustry, TX Rail Products'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.

TX Rail Products Effective Interest Rate on Debt % vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, TX Rail Products's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where TX Rail Products's Effective Interest Rate on Debt % falls into.


TX Rail Products Effective Interest Rate on Debt % Calculation

TX Rail Products's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Sep. 2020 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Sep. 2019 )+Total Debt  (A: Sep. 2020 ))/ count )
=-1  *  -0.021/( (2.494+2.43)/ 2 )
=-1  *  -0.021/2.462
=0.85 %

where

Total Debt  (A: Sep. 2019 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.425 + 0.069
=2.494

Total Debt  (A: Sep. 2020 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2 + 0.43
=2.43

TX Rail Products's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2019 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2019 )+Total Debt  (Q: Sep. 2019 ))/ count )
=-1  *  -0.104/( (2.508+2.494)/ 2 )
=-1  *  -0.104/2.501
=4.16 %

where

Total Debt  (Q: Jun. 2019 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.439 + 0.069
=2.508

Total Debt  (Q: Sep. 2019 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.425 + 0.069
=2.494

* 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 (Sep. 2019) 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 4.16% mean?
TX Rail Products (TXRP) has a Effective Interest Rate on Debt % of 4.16% as of Sep. 2019. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on TX Rail Products and its competitors.
Is TX Rail Products' Effective Interest Rate on Debt % too high?
TX Rail Products' current Effective Interest Rate on Debt % is 4.16%.
How does TX Rail Products' Effective Interest Rate on Debt % compare to FAST and GWW?
TX Rail Products' Effective Interest Rate on Debt % of 4.16% can be compared against companies in the Industrial Distribution 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 Industrial Distribution company?
A good Effective Interest Rate on Debt % depends on the Industrial Distribution 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 TX Rail Products and its competitors. TX Rail Products's current Effective Interest Rate on Debt % is 4.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TX Rail Products stock overvalued right now?
TX Rail Products (TXRP) has a current Effective Interest Rate on Debt % of 4.16%. The current Effective Interest Rate on Debt % is 4.16%. 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 TX Rail Products (TXRP), the current Effective Interest Rate on Debt % is 4.16% as of Sep. 2019. 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.

TX Rail Products Business Description

Address 12080 Virginia Boulevard, Ashland, KY, USA, 41102
TX Rail Products Inc is in the business of supplying, distributing and selling rail material to domestic coal mining industry, short line railroads, and tunneling contractors.