McGraw HillFRA:1LI +4.52%31 Interest Coverage is 0.72 as of Mar. 2026, which is 14% above its 10-year median of 0.63. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 195 Education companies, McGraw Hill ranks worse than 89.74% 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. McGraw Hill's
Operating Income
for the
three
months ended in Mar. 2026 was €28 Mil. McGraw Hill's Interest Expense for the
three
months ended in Mar. 2026 was €-39 Mil.
McGraw Hill's interest coverage for the quarter that ended in Mar. 2026 was 0.72.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. McGraw Hill Inc interest coverage is 1.52, which is low.
The historical rank and industry rank for McGraw Hill's Interest Coverage or its related term are showing as below:
FRA:1LI'
s Interest Coverage Range Over the Past 10 Years
Min: 0.26 Med: 0.63 Max: 1.52
Current: 1.52
FRA:1LI's Interest Coverage is ranked worse than 89.74% of 195
companies
in the Education industry
Industry Median: 12.93
vs FRA:1LI: 1.52
McGraw Hill (FRA:1LI) 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 .
McGraw Hill Interest Coverage Related Terms
McGraw Hill Interest Coverage Historical Data
* Premium members only.
The historical data trend for McGraw Hill'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.
FRA:1LI vs STRA, COUR, LINC: Interest Coverage Comparison
For the Education & Training Services subindustry, McGraw Hill'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.
McGraw Hill Interest Coverage vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's Interest Coverage distribution charts can be found below:
* The bar in red indicates where McGraw Hill'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.
McGraw Hill (FRA:1LI) has a Interest Coverage of 0.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on McGraw Hill and its competitors. This is 14% above median its historical median of 0.63. Over the past decade, McGraw Hill's Interest Coverage has ranged from 0.26 to 1.52. According to the industry distribution chart, McGraw Hill ranks #175 out of 195 companies in the Education industry, placing it in the top 89.7%.
Is McGraw Hill's Interest Coverage too high?
McGraw Hill's current Interest Coverage of 0.72 is 14% above median its 10-year median of 0.63. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 1.52. The Education industry median Interest Coverage is 12.93. McGraw Hill's value of 0.72 is 94.4% below this industry median. Based on the distribution chart, McGraw Hill ranks #175 out of 195 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Interest Coverage compare to STRA and COUR?
According to the Education industry distribution chart, McGraw Hill ranks #175 out of 195 companies for Interest Coverage. This places McGraw Hill in the lower half of its industry. The industry median Interest Coverage is 12.93. McGraw Hill's value of 0.72 is 94.4% below this benchmark. Historically, McGraw Hill's own Interest Coverage has ranged from 0.26 to 1.52 over the past decade. While the company's 10-year median is 0.63 vs. the industry median of 12.93, McGraw Hill 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 an Education company?
The median Interest Coverage among Education companies is 12.93, based on 195 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. McGraw Hill's current Interest Coverage of 0.72 is 94.4% 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 McGraw Hill and its competitors. For the Education industry, the median Interest Coverage is 12.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current Interest Coverage is 0.72, which is 14% above median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current Interest Coverage of 0.72. The current Interest Coverage is 0.72, which is 14% above median its 10-year median of 0.63 and 94.4% below the Education industry median of 12.93. McGraw Hill's overall GF Score™ is 31/100 with 5 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 McGraw Hill (FRA:1LI), the current Interest Coverage is 0.72 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.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
Get the complete analysis for FRA:1LI
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:1LI has been successfully added to your 
