Rio Tinto (CHIX:RIOL) Interest Coverage: 9.27 (As of Dec. 2025) — 20% Below Median


CHIX:RIOL Rio Tinto PLC CHIX:RIOL
76 GF Score
Price £71.98
GF Value £52.82
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Rio Tinto Interest Coverage?

Rio Tinto CHIX:RIOL +0.83% 76 Interest Coverage is 9.27 as of Dec. 2025, which is 20% below its 10-year median of 11.66. GuruFocus rates CHIX:RIOL with a GF Score™ of 76/100 and a GF Value™ of £52.82 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,319 Metals & Mining companies, Rio Tinto ranks worse than 83.4% 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. Rio Tinto's Operating Income for the six months ended in Dec. 2025 was £6,241 Mil. Rio Tinto's Interest Expense for the six months ended in Dec. 2025 was £-673 Mil. Rio Tinto's interest coverage for the quarter that ended in Dec. 2025 was 9.27. The higher the ratio, the stronger the company's financial strength is.

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

CHIX:RIOl' s Interest Coverage Range Over the Past 10 Years
Min: 5.8   Med: 11.66   Max: 50.5
Current: 8.45


CHIX:RIOl's Interest Coverage is ranked worse than
83.4% of 1319 companies
in the Metals & Mining industry
Industry Median: No Debt vs CHIX:RIOl: 8.45

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


Rio Tinto  (CHIX:RIOl) 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 .


Rio Tinto Interest Coverage Related Terms


Rio Tinto Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rio Tinto'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.

Rio Tinto Interest Coverage Chart

Rio Tinto Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.50 10.41 8.03 9.08 8.45

Rio Tinto Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.79 10.27 7.92 7.64 9.27

Rio Tinto Interest Coverage Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Rio Tinto'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.


Rio Tinto Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rio Tinto's Interest Coverage distribution charts can be found below:

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


CHIX:RIOL
76GF Score
Rio Tinto PLC CHIX:RIOL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rio Tinto 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.

Rio Tinto's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Rio Tinto's Interest Expense was £-1,366 Mil. Its Operating Income was £11,540 Mil. And its Long-Term Debt & Capital Lease Obligation was £16,628 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*11539.656/-1366.263
=8.45

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

Here, for the six months ended in Dec. 2025, Rio Tinto's Interest Expense was £-673 Mil. Its Operating Income was £6,241 Mil. And its Long-Term Debt & Capital Lease Obligation was £16,628 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*6241.185/-673.047
=9.27

* 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 9.27 mean?
Rio Tinto (CHIX:RIOL) has a Interest Coverage of 9.27 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rio Tinto and its competitors. This is 20% below median its historical median of 11.66. Over the past decade, Rio Tinto's Interest Coverage has ranged from 5.80 to 50.50. According to the industry distribution chart, Rio Tinto ranks #1100 out of 1319 companies in the Metals & Mining industry, placing it in the top 83.4%.
Is Rio Tinto's Interest Coverage too high?
Rio Tinto's current Interest Coverage of 9.27 is 20% below median its 10-year median of 11.66. Over the past 10 years, this metric has ranged from a low of 5.80 to a high of 50.50. The Metals & Mining industry median Interest Coverage is 10,000.00. Rio Tinto's value of 9.27 is 99.9% below this industry median. Based on the distribution chart, Rio Tinto ranks #1100 out of 1319 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Rio Tinto has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rio Tinto's Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, Rio Tinto ranks #1100 out of 1319 companies for Interest Coverage. This places Rio Tinto in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Rio Tinto's value of 9.27 is 99.9% below this benchmark. Historically, Rio Tinto's own Interest Coverage has ranged from 5.80 to 50.50 over the past decade. While the company's 10-year median is 11.66 vs. the industry median of 10,000.00, Rio Tinto 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,319 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. Rio Tinto's current Interest Coverage of 9.27 is 99.9% 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 Rio Tinto and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rio Tinto's current Interest Coverage is 9.27, which is 20% below median its own 10-year median of 11.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rio Tinto stock overvalued right now?
Based on GuruFocus' analysis, Rio Tinto (CHIX:RIOL) is currently considered Significantly Overvalued. The stock's GF Value™ is £52.82, compared to a current price of £71.98 — trading 36.3% above its estimated fair value. The current Interest Coverage is 9.27, which is 20% below median its 10-year median of 11.66 and 99.9% below the Metals & Mining industry median of 10,000.00. Rio Tinto's overall GF Score™ is 76/100 with 8 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 Rio Tinto (CHIX:RIOL), the current Interest Coverage is 9.27 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 Rio Tinto (CHIX:RIOL) Overvalued in 2026?

Based on GuruFocus' analysis, Rio Tinto stock appears to be overvalued. The current stock price of £71.98 is trading 36.3% above its estimated GF Value™ of £52.82. GuruFocus considers Rio Tinto to be Significantly Overvalued.

Key valuation signals for CHIX:RIOL:

  • Interest Coverage: 9.27 (20% below median its 10-year median of 11.66)
  • GF Value™: £52.82 vs. price of £71.98 (36.3% above fair value)
  • GF Score™: 76/100 with 8 warning signs
  • Industry Position: 99.9% below the Metals & Mining median (#1100 of 1319)

No single metric tells the full story. See the CHIX:RIOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rio Tinto Business Description

Address 6 St James’s Square, London, GBR, SW1Y 4AD
Rio Tinto is a global diversified miner. Iron ore is its major commodity, with lesser contributions from copper and aluminum. Lithium, diamonds, gold, and industrial minerals are more minor contributors. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity, with shareholders in each company having equivalent economic and voting rights. Major assets included the Pilbara iron ore operations, a 30% stake in the Escondida copper mine, 66%-ownership of the Oyu Tolgoi copper mine in Mongolia, the Weipa and Gove bauxite mines in Australia, and six hydro-powered aluminum smelters in Canada.
76GF Score

Get the complete analysis for CHIX:RIOL

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£71.98
Price
£52.82
GF Value