Tasmea (ASX:TEA) Interest Coverage: 6.05 (As of Dec. 2025) — 39% Below Median


ASX:TEA Tasmea Ltd ASX:TEA
24 GF Score
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What is Tasmea Interest Coverage?

Tasmea ASX:TEA -1.88% 24 Interest Coverage is 6.05 as of Dec. 2025, which is 39% below its 10-year median of 9.99. GuruFocus rates ASX:TEA with a GF Score™ of 24/100. The stock has 4 warning signs investors should review. Among 1,351 Construction companies, Tasmea ranks better than 50.63% 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. Tasmea's Operating Income for the six months ended in Dec. 2025 was A$38.4 Mil. Tasmea's Interest Expense for the six months ended in Dec. 2025 was A$-6.3 Mil. Tasmea's interest coverage for the quarter that ended in Dec. 2025 was 6.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tasmea's Interest Coverage or its related term are showing as below:

ASX:TEA' s Interest Coverage Range Over the Past 10 Years
Min: 4.42   Med: 9.99   Max: 12.11
Current: 8.08


ASX:TEA's Interest Coverage is ranked better than
50.63% of 1351 companies
in the Construction industry
Industry Median: 7.81 vs ASX:TEA: 8.08

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Tasmea  (ASX:TEA) 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 .


Tasmea Interest Coverage Related Terms


Tasmea Interest Coverage Historical Data

* Premium members only.

The historical data trend for Tasmea'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.

Tasmea Interest Coverage Chart

Tasmea Annual Data
Trend Jun22 Jun23 Jun24 Jun25
Interest Coverage
4.42 10.20 12.11 9.77

Tasmea Semi-Annual Data
Jun22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial 10.16 15.29 7.71 12.54 6.05

ASX:TEA vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Tasmea'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.


Tasmea Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Tasmea's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tasmea's Interest Coverage falls into.


ASX:TEA
24GF Score
Tasmea Ltd ASX:TEA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Tasmea 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Tasmea's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Tasmea's Interest Expense was A$-6.8 Mil. Its Operating Income was A$66.3 Mil. And its Long-Term Debt & Capital Lease Obligation was A$110.0 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*66.31/-6.786
=9.77

Tasmea's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Tasmea's Interest Expense was A$-6.3 Mil. Its Operating Income was A$38.4 Mil. And its Long-Term Debt & Capital Lease Obligation was A$133.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*38.367/-6.344
=6.05

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.05 mean?
Tasmea (ASX:TEA) has a Interest Coverage of 6.05 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tasmea and its competitors. This is 39% below median its historical median of 9.99. Over the past decade, Tasmea's Interest Coverage has ranged from 4.42 to 12.11. According to the industry distribution chart, Tasmea ranks #667 out of 1351 companies in the Construction industry, placing it in the top 49.4%.
Is Tasmea's Interest Coverage too high?
Tasmea's current Interest Coverage of 6.05 is 39% below median its 10-year median of 9.99. Over the past 10 years, this metric has ranged from a low of 4.42 to a high of 12.11. The Construction industry median Interest Coverage is 7.81. Tasmea's value of 6.05 is 22.5% below this industry median. Based on the distribution chart, Tasmea ranks #667 out of 1351 companies in the Construction industry, which is above the industry midpoint. Overall, Tasmea has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Tasmea's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Tasmea ranks #667 out of 1351 companies for Interest Coverage. This puts Tasmea in the upper half of its industry. The industry median Interest Coverage is 7.81. Tasmea's value of 6.05 is 22.5% below this benchmark. Historically, Tasmea's own Interest Coverage has ranged from 4.42 to 12.11 over the past decade. While the company's 10-year median is 9.99 vs. the industry median of 7.81, Tasmea 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 Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,351 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. Tasmea's current Interest Coverage of 6.05 is 22.5% 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 Tasmea and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tasmea's current Interest Coverage is 6.05, which is 39% below median its own 10-year median of 9.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tasmea stock overvalued right now?
Tasmea (ASX:TEA) has a current Interest Coverage of 6.05. The current Interest Coverage is 6.05, which is 39% below median its 10-year median of 9.99 and 22.5% below the Construction industry median of 7.81. Tasmea's overall GF Score™ is 24/100 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 Tasmea (ASX:TEA), the current Interest Coverage is 6.05 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.

Tasmea Business Description

Address 75 Verde Drive, Jandakot, Perth, WA, AUS, 6164
Tasmea Ltd is a skilled services group. It provides specialist maintenance services, including essential shutdown, programmed maintenance, emergency breakdown, and sustaining capital upgrade services to asset and infrastructure owners of fixed plant operating in essential Australian industries. Tasmea operates across the following four segments: Electrical services, Mechanical services, Civil services, and Water and Fluid services. Maximum revenue is generated from its Electrical services segment, which operates as a remote area specialist services provider in industrial and commercial electrical and instrumentation services, maintenance and compliance of electrical assets, and indigenous trade services.
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