NextEd GroupASX:NXD -3.53% Interest Coverage is 0.26 as of Dec. 2025. The stock has 3 warning signs investors should review. Among 196 Education companies, NextEd Group ranks worse than 510203.57% 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. NextEd Group's
Operating Income
for the
six
months ended in Dec. 2025 was A$0.45 Mil. NextEd Group's Interest Expense for the
six
months ended in Dec. 2025 was A$-1.75 Mil.
NextEd Group's interest coverage for the quarter that ended in Dec. 2025 was 0.26.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for NextEd Group's Interest Coverage or its related term are showing as below:
ASX:NXD's Interest Coverage is not ranked *
in the Education industry.
Industry Median: 12.84 * Ranked among companies with meaningful Interest Coverage only.
NextEd Group (ASX:NXD) 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 .
NextEd Group Interest Coverage Related Terms
NextEd Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for NextEd Group'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:NXD vs EDU, TAL, GHC: Interest Coverage Comparison
For the Education & Training Services subindustry, NextEd 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.
NextEd Group Interest Coverage vs Education Industry
For the Education industry and Consumer Defensive sector, NextEd Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NextEd Group'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.
NextEd Group (ASX:NXD) has a Interest Coverage of 0.26 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NextEd Group and its competitors. According to the industry distribution chart, NextEd Group ranks #999999 out of 196 companies in the Education industry.
Is NextEd Group's Interest Coverage too high?
NextEd Group's current Interest Coverage is 0.26. The Education industry median Interest Coverage is 12.84. NextEd Group's value of 0.26 is 98% below this industry median. Based on the distribution chart, NextEd Group ranks #999999 out of 196 companies in the Education industry, which is in the bottom quartile relative to peers.
How does NextEd Group's Interest Coverage compare to EDU and TAL?
According to the Education industry distribution chart, NextEd Group ranks #999999 out of 196 companies for Interest Coverage. This places NextEd Group in the lower half of its industry. The industry median Interest Coverage is 12.84. NextEd Group's value of 0.26 is 98% below this benchmark. 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 Education company?
The median Interest Coverage among Education companies is 12.84, based on 196 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. NextEd Group's current Interest Coverage of 0.26 is 98% 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 NextEd Group and its competitors. For the Education industry, the median Interest Coverage is 12.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextEd Group's current Interest Coverage is 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEd Group stock overvalued right now?
Based on GuruFocus' analysis, NextEd Group (ASX:NXD) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.23, compared to a current price of A$0.08 — trading 64.3% below its estimated fair value. The current Interest Coverage is 0.26 and 98% below the Education industry median of 12.84. 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 NextEd Group (ASX:NXD), the current Interest Coverage is 0.26 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.
NextEd Group Ltd is engaged in the provision of vocational education and training solutions. It is a listed private education provider, delivering learning experiences through a national campus network across Adelaide, Brisbane, Gold Coast, Melbourne, Perth, and Sydney. NextEd offers courses across the English Language, Vocational, and Higher Education sectors, spanning industries including business, technology, design, hospitality, health, and community services. In addition, it provides education recruitment agency services to international students. The group's operating segments are: International, which generates maximum revenue, Technology and Design, Domestic Vocational, and Go Study. Geographically, it generates maximum revenue from Australia, followed by Europe and South America.
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