ReadCloudASX:RCL -2.90% Interest Coverage is 285.20 as of Mar. 2026, which is 97% below its 10-year median of 10,000.00. The stock has 3 warning signs investors should review. Among 1,707 Software companies, ReadCloud ranks worse than 58582.25% 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. ReadCloud's
Operating Income
for the
six
months ended in Mar. 2026 was A$1.43 Mil. ReadCloud's Interest Expense for the
six
months ended in Mar. 2026 was A$-0.01 Mil.
ReadCloud's interest coverage for the quarter that ended in Mar. 2026 was 285.20.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ReadCloud's Interest Coverage or its related term are showing as below:
ASX:RCL's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.65 * Ranked among companies with meaningful Interest Coverage only.
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 .
ReadCloud Interest Coverage Related Terms
ReadCloud Interest Coverage Historical Data
* Premium members only.
The historical data trend for ReadCloud'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:RCL vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, ReadCloud'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.
ReadCloud Interest Coverage vs Software Industry
For the Software industry and Technology sector, ReadCloud's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ReadCloud'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.
ReadCloud (ASX:RCL) has a Interest Coverage of 285.20 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ReadCloud and its competitors. This is 97% below median its historical median of 10,000.00. According to the industry distribution chart, ReadCloud ranks #999999 out of 1707 companies in the Software industry.
Is ReadCloud's Interest Coverage too high?
ReadCloud's current Interest Coverage of 285.20 is 97% below median its 10-year median of 10,000.00. The Software industry median Interest Coverage is 24.65. ReadCloud's value of 285.20 is 1057% above this industry median. Based on the distribution chart, ReadCloud ranks #999999 out of 1707 companies in the Software industry, which is in the bottom quartile relative to peers.
How does ReadCloud's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, ReadCloud ranks #999999 out of 1707 companies for Interest Coverage. This places ReadCloud in the lower half of its industry. The industry median Interest Coverage is 24.65. ReadCloud's value of 285.20 is 1057% above this benchmark. While the company's 10-year median is 10,000.00 vs. the industry median of 24.65, ReadCloud has consistently been above 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 Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 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. ReadCloud's current Interest Coverage of 285.20 is 1057% above 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 ReadCloud and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadCloud's current Interest Coverage is 285.20, which is 97% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadCloud stock overvalued right now?
Based on GuruFocus' analysis, ReadCloud (ASX:RCL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 33% below its estimated fair value. The current Interest Coverage is 285.20, which is 97% below median its 10-year median of 10,000.00 and 1057% above the Software industry median of 24.65. 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 ReadCloud (ASX:RCL), the current Interest Coverage is 285.20 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.
ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.
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