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
EBIT
by its Interest Expense. Generation Development Group's
EBIT
for the
six
months ended in Dec. 2025 was A$-8.5 Mil. Generation Development Group's Interest Expense for the
six
months ended in Dec. 2025 was A$-3.7 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Generation Development Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Generation Development Group's Interest Coverage or its related term are showing as below:
ASX:GDG'
s Interest Coverage Range Over the Past 10 Years
Min: 98.33 Med: 1644.34 Max: 4746.18
Current: 127.36
ASX:GDG's Interest Coverage is ranked better than 57.56% of 476
companies
in the Asset Management industry
Industry Median: 43.13
vs ASX:GDG: 127.36
Generation Development Group (ASX:GDG) 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 .
Generation Development Group Interest Coverage Related Terms
Generation Development Group Interest Coverage Historical Data
* 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.
Generation Development Group Interest Coverage Chart
ASX:GDG vs BLK, BX, KKR: Interest Coverage Comparison
For the Asset Management subindustry, Generation Development Group'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.
Generation Development Group Interest Coverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Generation Development Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Generation Development Group's Interest Coverage falls into.
Generation Development Group Interest Coverage Calculation
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:
Generation Development Group did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Generation Development Group (ASX:GDG) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Generation Development Group and its competitors. Over the past decade, Generation Development Group's Interest Coverage has ranged from 98.33 to 4,746.18. According to the industry distribution chart, Generation Development Group ranks #202 out of 476 companies in the Asset Management industry, placing it in the top 42.4%.
Is Generation Development Group's Interest Coverage too high?
Generation Development Group's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 98.33 to a high of 4,746.18. Based on the distribution chart, Generation Development Group ranks #202 out of 476 companies in the Asset Management industry, which is above the industry midpoint. Overall, Generation Development Group has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Generation Development Group's Interest Coverage compare to BLK and BX?
According to the Asset Management industry distribution chart, Generation Development Group ranks #202 out of 476 companies for Interest Coverage. This puts Generation Development Group in the upper half of its industry. The industry median Interest Coverage is 43.13. Historically, Generation Development Group's own Interest Coverage has ranged from 98.33 to 4,746.18 over the past decade. 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 an Asset Management company?
The median Interest Coverage among Asset Management companies is 43.13, based on 476 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. 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 Generation Development Group and its competitors. For the Asset Management industry, the median Interest Coverage is 43.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Generation Development Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Generation Development Group stock overvalued right now?
Based on GuruFocus' analysis, Generation Development Group (ASX:GDG) is currently considered Possible Value Trap. The stock's GF Value™ is A$7.16, compared to a current price of A$3.37 — trading 52.9% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Generation Development Group's overall GF Score™ is 57/100 with 3 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 Generation Development Group (ASX:GDG), the current Interest Coverage is 0 (At Loss) 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.
Is Generation Development Group (ASX:GDG) Overvalued in 2026?
Based on GuruFocus' analysis, Generation Development Group stock appears to be undervalued.
The current stock price of A$3.37 is trading 52.9% below its estimated GF Value™ of A$7.16.
GuruFocus considers Generation Development Group to be Possible Value Trap.
Key valuation signals for ASX:GDG:
Interest Coverage: 0 (At Loss)
GF Value™: A$7.16 vs. price of A$3.37 (52.9% below fair value)
No single metric tells the full story. See the ASX:GDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1991, Generation originally operated as a pooled development fund, focusing on providing capital to businesses in financial services. Today, the firm is structured across three key business lines within wealth management. The first is through Generation Life, the market leader in investment bonds by in-flows, which offers tax-effective products, including investment bonds and annuities. The second business line is Lonsec, a prominent research and ratings provider to the Australian financial services sector, competing against Morningstar and Zenith. The third division provides managed account solutions, a result of the merger between Evidentia and Lonsec Investment Solutions, offering individually owned accounts professionally managed by experienced portfolio managers.
57GF Score
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