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. Volvo Car AB's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $142 Mil. Volvo Car AB's average total debt for the quarter that ended in Mar. 2026 was $3,808 Mil. Therefore, Volvo Car AB's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.73%.
Volvo Car AB (OTCPK:VLVCY) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Volvo Car AB Effective Interest Rate on Debt % Related Terms
Volvo Car AB Effective Interest Rate on Debt % Historical Data
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The historical data trend for Volvo Car AB'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.
Volvo Car AB Effective Interest Rate on Debt % Chart
VLVCY vs TSLA, GM, F: Effective Interest Rate on Debt % Comparison
For the Auto Manufacturers subindustry, Volvo Car AB'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.
Volvo Car AB Effective Interest Rate on Debt % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's Effective Interest Rate on Debt % falls into.
* 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 3.73% mean?
Volvo Car AB (VLVCY) has a Effective Interest Rate on Debt % of 3.73% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Volvo Car AB and its competitors.
Is Volvo Car AB's Effective Interest Rate on Debt % too high?
Volvo Car AB's current Effective Interest Rate on Debt % is 3.73%. Overall, Volvo Car AB has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's Effective Interest Rate on Debt % compare to TSLA and GM?
Volvo Car AB's Effective Interest Rate on Debt % of 3.73% can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Effective Interest Rate on Debt % depends on the Vehicles & Parts 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 Volvo Car AB and its competitors. Volvo Car AB's current Effective Interest Rate on Debt % is 3.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo Car AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo Car AB (VLVCY) is currently considered Possible Value Trap. The stock's GF Value™ is $5.46, compared to a current price of $3.73 — trading 31.7% below its estimated fair value. The current Effective Interest Rate on Debt % is 3.73%. Volvo Car AB's overall GF Score™ is 74/100 with 5 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 Volvo Car AB (VLVCY), the current Effective Interest Rate on Debt % is 3.73% 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 Volvo Car AB (VLVCY) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of $3.73 is trading 31.7% below its estimated GF Value™ of $5.46.
GuruFocus considers Volvo Car AB to be Possible Value Trap.
Key valuation signals for VLVCY:
Effective Interest Rate on Debt %: 3.73%
GF Value™: $5.46 vs. price of $3.73 (31.7% below fair value)
No single metric tells the full story. See the VLVCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it has a presence in China, the USA; Sweden; Germany; the United Kingdom; Japan, and South Korea. The company generates maximum revenue from the sale of new cars.
74GF Score
Get the complete analysis for VLVCY
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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