Air CanadaACDVF +0.94%83 Interest Coverage is 0.79 as of Mar. 2026, which is 72% below its 10-year median of 2.81. GuruFocus rates ACDVF with a GF Score™ of 83/100 and a GF Value™ of $16.96 (Fairly Valued). The stock has 4 warning signs investors should review. Among 846 Transportation companies, Air Canada ranks worse than 80.85% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Air Canada's
Operating Income
for the
three
months ended in Mar. 2026 was $85 Mil. Air Canada's Interest Expense for the
three
months ended in Mar. 2026 was $-109 Mil.
Air Canada's interest coverage for the quarter that ended in Mar. 2026 was 0.79.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Air Canada's Interest Coverage or its related term are showing as below:
ACDVF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.51 Med: 2.81 Max: 5.09
Current: 1.94
ACDVF's Interest Coverage is ranked worse than 80.85% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs ACDVF: 1.94
Air Canada (OTCPK:ACDVF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Air Canada Interest Coverage Related Terms
Air Canada Interest Coverage Historical Data
* Premium members only.
The historical data trend for Air Canada's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ACDVF vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Air Canada's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Air Canada Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Air Canada's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Air Canada (ACDVF) has a Interest Coverage of 0.79 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Canada and its competitors. This is 72% below median its historical median of 2.81. Over the past decade, Air Canada's Interest Coverage has ranged from 1.51 to 5.09. According to the industry distribution chart, Air Canada ranks #684 out of 846 companies in the Transportation industry, placing it in the top 80.9%.
Is Air Canada's Interest Coverage too high?
Air Canada's current Interest Coverage of 0.79 is 72% below median its 10-year median of 2.81. Over the past 10 years, this metric has ranged from a low of 1.51 to a high of 5.09. The Transportation industry median Interest Coverage is 5.67. Air Canada's value of 0.79 is 86.1% below this industry median. Based on the distribution chart, Air Canada ranks #684 out of 846 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Air Canada has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #684 out of 846 companies for Interest Coverage. This places Air Canada in the lower half of its industry. The industry median Interest Coverage is 5.67. Air Canada's value of 0.79 is 86.1% below this benchmark. Historically, Air Canada's own Interest Coverage has ranged from 1.51 to 5.09 over the past decade. While the company's 10-year median is 2.81 vs. the industry median of 5.67, Air Canada has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Canada's current Interest Coverage of 0.79 is 86.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Canada and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current Interest Coverage is 0.79, which is 72% below median its own 10-year median of 2.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (ACDVF) is currently considered Fairly Valued. The stock's GF Value™ is $16.96, compared to a current price of $17.20 — trading 1.4% above its estimated fair value. The current Interest Coverage is 0.79, which is 72% below median its 10-year median of 2.81 and 86.1% below the Transportation industry median of 5.67. Air Canada's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Air Canada (ACDVF), the current Interest Coverage is 0.79 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 Air Canada (ACDVF) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be overvalued.
The current stock price of $17.20 is trading 1.4% above its estimated GF Value™ of $16.96.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for ACDVF:
Interest Coverage: 0.79 (72% below median its 10-year median of 2.81)
GF Value™: $16.96 vs. price of $17.20 (1.4% above fair value)
Industry Position: 86.1% below the Transportation median (#684 of 846)
No single metric tells the full story. See the ACDVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
83GF Score
Get the complete analysis for ACDVF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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