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. DXC Technology Co's
Operating Income
for the
three
months ended in Mar. 2026 was €-40 Mil. DXC Technology Co's Interest Expense for the
three
months ended in Mar. 2026 was €-48 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 DXC Technology Co's Interest Coverage or its related term are showing as below:
FRA:2XT'
s Interest Coverage Range Over the Past 10 Years
Min: 1.16 Med: 2.24 Max: 7.87
Current: 1.39
FRA:2XT's Interest Coverage is ranked worse than 93.44% of 1707
companies
in the Software industry
Industry Median: 24.65
vs FRA:2XT: 1.39
DXC Technology Co (FRA:2XT) 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 .
DXC Technology Co Interest Coverage Related Terms
DXC Technology Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for DXC Technology Co'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:2XT vs CLVT, CNXC, GLOB: Interest Coverage Comparison
For the Information Technology Services subindustry, DXC Technology Co'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.
DXC Technology Co Interest Coverage vs Software Industry
For the Software industry and Technology sector, DXC Technology Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where DXC Technology Co'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:
DXC Technology Co 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?
DXC Technology Co (FRA:2XT) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DXC Technology Co and its competitors. Over the past decade, DXC Technology Co's Interest Coverage has ranged from 1.16 to 7.87. According to the industry distribution chart, DXC Technology Co ranks #1595 out of 1707 companies in the Software industry, placing it in the top 93.4%.
Is DXC Technology Co's Interest Coverage too high?
DXC Technology Co's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 7.87. Based on the distribution chart, DXC Technology Co ranks #1595 out of 1707 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, DXC Technology Co has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DXC Technology Co's Interest Coverage compare to CLVT and CNXC?
According to the Software industry distribution chart, DXC Technology Co ranks #1595 out of 1707 companies for Interest Coverage. This places DXC Technology Co in the lower half of its industry. The industry median Interest Coverage is 24.65. Historically, DXC Technology Co's own Interest Coverage has ranged from 1.16 to 7.87 over the past decade. 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. 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 DXC Technology Co 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. DXC Technology Co'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 DXC Technology Co stock overvalued right now?
Based on GuruFocus' analysis, DXC Technology Co (FRA:2XT) is currently considered Possible Value Trap. The stock's GF Value™ is €17.88, compared to a current price of €7.36 — trading 58.8% below its estimated fair value. The current Interest Coverage is 0 (At Loss). DXC Technology Co's overall GF Score™ is 52/100 with 2 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 DXC Technology Co (FRA:2XT), the current Interest Coverage is 0 (At Loss) 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.
Is DXC Technology Co (FRA:2XT) Overvalued in 2026?
Based on GuruFocus' analysis, DXC Technology Co stock appears to be undervalued.
The current stock price of €7.36 is trading 58.8% below its estimated GF Value™ of €17.88.
GuruFocus considers DXC Technology Co to be Possible Value Trap.
Key valuation signals for FRA:2XT:
Interest Coverage: 0 (At Loss)
GF Value™: €17.88 vs. price of €7.36 (58.8% below fair value)
No single metric tells the full story. See the FRA:2XT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.
52GF Score
Get the complete analysis for FRA:2XT
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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