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. Educational Development's
Operating Income
for the
three
months ended in Feb. 2026 was $-2.29 Mil. Educational Development's Interest Expense for the
three
months ended in Feb. 2026 was $-0.00 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Educational Development's Interest Coverage or its related term are showing as below:
EDUC's Interest Coverage is not ranked *
in the Media - Diversified industry.
Industry Median: 11.88 * Ranked among companies with meaningful Interest Coverage only.
Educational Development (NAS:EDUC) 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 .
Educational Development Interest Coverage Related Terms
Educational Development Interest Coverage Historical Data
* Premium members only.
The historical data trend for Educational Development'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.
EDUC vs TNMG, NYT, WLY: Interest Coverage Comparison
For the Publishing subindustry, Educational Development'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.
Educational Development Interest Coverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Educational Development's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Educational Development's Interest Coverage falls into.
Educational Development 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:
Educational Development 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?
Educational Development (EDUC) has a Interest Coverage of 0 (At Loss) as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Educational Development and its competitors. According to the industry distribution chart, Educational Development ranks #999999 out of 609 companies in the Media - Diversified industry.
Is Educational Development's Interest Coverage too high?
Educational Development's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Educational Development ranks #999999 out of 609 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Educational Development has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Educational Development's Interest Coverage compare to TNMG and NYT?
According to the Media - Diversified industry distribution chart, Educational Development ranks #999999 out of 609 companies for Interest Coverage. This places Educational Development in the lower half of its industry. The industry median Interest Coverage is 11.88. 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.88, based on 609 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 Educational Development and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Educational Development'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 Educational Development stock overvalued right now?
Based on GuruFocus' analysis, Educational Development (EDUC) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.82, compared to a current price of $1.55 — trading 88.4% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Educational Development's overall GF Score™ is 45/100 with 7 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 Educational Development (EDUC), the current Interest Coverage is 0 (At Loss) as of Feb. 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.
Is Educational Development (EDUC) Overvalued in 2026?
Based on GuruFocus' analysis, Educational Development stock appears to be overvalued.
The current stock price of $1.55 is trading 88.4% above its estimated GF Value™ of $0.82.
GuruFocus considers Educational Development to be Significantly Overvalued.
Key valuation signals for EDUC:
Interest Coverage: 0 (At Loss)
GF Value™: $0.82 vs. price of $1.55 (88.4% above fair value)
No single metric tells the full story. See the EDUC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Educational Development Corp distributes books and educational products and publications through its PaperPie and EDC Publishing divisions to individual consumers, book, toy and gift stores, libraries and home educators located throughout the United States. The company is the owner and exclusive publisher of Kane Miller children's books; Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. It also the exclusive United States Multi-Level Marketing (MLM) distributor of Usborne Publishing Limited (Usborne) children's books. It sell children's books, educational toys and games and other related products. It has two reportable segments: PaperPie and Publishing of which majority of revenue comes from Paperpie.
45GF Score
Get the complete analysis for EDUC
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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