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ButnASX:BTN Interest Coverage is 0.62 as of Dec. 2025, which is 3% below its 10-year median of 0.64. The stock has 7 warning signs investors should review. Among 163 Credit Services companies, Butn ranks worse than 97.55% 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. Butn's
Operating Income
for the
six
months ended in Dec. 2025 was A$3.40 Mil. Butn's Interest Expense for the
six
months ended in Dec. 2025 was A$-5.49 Mil.
Butn's interest coverage for the quarter that ended in Dec. 2025 was 0.62.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Butn Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Butn's Interest Coverage or its related term are showing as below:
ASX:BTN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.47 Med: 0.64 Max: 0.64
Current: 0.47
ASX:BTN's Interest Coverage is ranked worse than 97.55% of 163
companies
in the Credit Services industry
Industry Median: 47.86
vs ASX:BTN: 0.47
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 .
Butn Interest Coverage Related Terms
Butn Interest Coverage Historical Data
* Premium members only.
The historical data trend for Butn'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.
ASX:BTN vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, Butn'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.
Butn Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Butn's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Butn'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.
Butn (ASX:BTN) has a Interest Coverage of 0.62 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Butn and its competitors. This is near median its historical median of 0.64. Over the past decade, Butn's Interest Coverage has ranged from 0.47 to 0.64. According to the industry distribution chart, Butn ranks #159 out of 163 companies in the Credit Services industry, placing it in the top 97.5%.
Is Butn's Interest Coverage too high?
Butn's current Interest Coverage of 0.62 is near median its 10-year median of 0.64. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 0.64. The Credit Services industry median Interest Coverage is 47.86. Butn's value of 0.62 is 98.7% below this industry median. Based on the distribution chart, Butn ranks #159 out of 163 companies in the Credit Services industry, which is in the bottom quartile relative to peers.
How does Butn's Interest Coverage compare to V and MA?
According to the Credit Services industry distribution chart, Butn ranks #159 out of 163 companies for Interest Coverage. This places Butn in the lower half of its industry. The industry median Interest Coverage is 47.86. Butn's value of 0.62 is 98.7% below this benchmark. Historically, Butn's own Interest Coverage has ranged from 0.47 to 0.64 over the past decade. While the company's 10-year median is 0.64 vs. the industry median of 47.86, Butn 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 47.86, based on 163 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. Butn's current Interest Coverage of 0.62 is 98.7% 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 Butn and its competitors. For the Credit Services industry, the median Interest Coverage is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Butn's current Interest Coverage is 0.62, which is near median its own 10-year median of 0.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Butn stock overvalued right now?
Based on GuruFocus' analysis, Butn (ASX:BTN) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.08, compared to a current price of A$0.02 — trading 77.5% below its estimated fair value. The current Interest Coverage is 0.62, which is near median its 10-year median of 0.64 and 98.7% below the Credit Services industry median of 47.86. 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 Butn (ASX:BTN), the current Interest Coverage is 0.62 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.
Butn Ltd is a B2B funder innovating the way SMEs fund and grow their businesses. It focuses on transactional funding helping businesses through their working capital constraints by financing individual transactions, leveraging end debtor's credit. The company earns revenue by charging a fixed funding fee on each transaction funded. The company has one operating segment, namely transactional funding.
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