Digital Workforce Services (FRA:DQ4) Interest Coverage: 0.82 (As of Dec. 2025) — 98% Below Median


FRA:DQ4 Digital Workforce Services PLC FRA:DQ4
62 GF Score
Price €2.36
GF Value €4.04
Valuation Possible Value Trap
! 7 Warning Signs
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What is Digital Workforce Services Interest Coverage?

Digital Workforce Services FRA:DQ4 +2.61% 62 Interest Coverage is 0.82 as of Dec. 2025, which is 98% below its 10-year median of 53.60. GuruFocus rates FRA:DQ4 with a GF Score™ of 62/100 and a GF Value™ of €4.04 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,704 Software companies, Digital Workforce Services ranks worse than 92.55% 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. Digital Workforce Services's Operating Income for the three months ended in Dec. 2025 was €0.17 Mil. Digital Workforce Services's Interest Expense for the three months ended in Dec. 2025 was €-0.21 Mil. Digital Workforce Services's interest coverage for the quarter that ended in Dec. 2025 was 0.82. The higher the ratio, the stronger the company's financial strength is.

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

FRA:DQ4' s Interest Coverage Range Over the Past 10 Years
Min: 1.51   Med: 53.6   Max: 53.6
Current: 1.51


FRA:DQ4's Interest Coverage is ranked worse than
92.55% of 1704 companies
in the Software industry
Industry Median: 24.75 vs FRA:DQ4: 1.51

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


Digital Workforce Services  (FRA:DQ4) 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 .


Digital Workforce Services Interest Coverage Related Terms


Digital Workforce Services Interest Coverage Historical Data

* Premium members only.

The historical data trend for Digital Workforce Services'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.

Digital Workforce Services Interest Coverage Chart

Digital Workforce Services Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 0.00 0.00 0.00 53.60 0.00

Digital Workforce Services Quarterly Data
Dec18 Dec19 Dec20 Sep21 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 0.00 N/A N/A 2.77 0.82

FRA:DQ4 vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, Digital Workforce Services'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.


Digital Workforce Services Interest Coverage vs Software Industry

For the Software industry and Technology sector, Digital Workforce Services's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Digital Workforce Services's Interest Coverage falls into.


FRA:DQ4
62GF Score
Digital Workforce Services PLC FRA:DQ4
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Digital Workforce Services 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.

Digital Workforce Services'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, Digital Workforce Services's Interest Expense was €-0.09 Mil. Its Operating Income was €-0.63 Mil. And its Long-Term Debt & Capital Lease Obligation was €3.92 Mil.

Digital Workforce Services did not have earnings to cover the interest expense.

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

Here, for the three months ended in Dec. 2025, Digital Workforce Services's Interest Expense was €-0.21 Mil. Its Operating Income was €0.17 Mil. And its Long-Term Debt & Capital Lease Obligation was €3.92 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*0.169/-0.206
=0.82

* 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 0.82 mean?
Digital Workforce Services (FRA:DQ4) has a Interest Coverage of 0.82 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Digital Workforce Services and its competitors. This is 98% below median its historical median of 53.60. Over the past decade, Digital Workforce Services' Interest Coverage has ranged from 1.51 to 53.60. According to the industry distribution chart, Digital Workforce Services ranks #1577 out of 1704 companies in the Software industry, placing it in the top 92.5%.
Is Digital Workforce Services' Interest Coverage too high?
Digital Workforce Services' current Interest Coverage of 0.82 is 98% below median its 10-year median of 53.60. Over the past 10 years, this metric has ranged from a low of 1.51 to a high of 53.60. The Software industry median Interest Coverage is 24.75. Digital Workforce Services' value of 0.82 is 96.7% below this industry median. Based on the distribution chart, Digital Workforce Services ranks #1577 out of 1704 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Digital Workforce Services has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Digital Workforce Services' Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Digital Workforce Services ranks #1577 out of 1704 companies for Interest Coverage. This places Digital Workforce Services in the lower half of its industry. The industry median Interest Coverage is 24.75. Digital Workforce Services' value of 0.82 is 96.7% below this benchmark. Historically, Digital Workforce Services' own Interest Coverage has ranged from 1.51 to 53.60 over the past decade. While the company's 10-year median is 53.60 vs. the industry median of 24.75, Digital Workforce Services 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 Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 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. Digital Workforce Services's current Interest Coverage of 0.82 is 96.7% 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 Digital Workforce Services and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Workforce Services's current Interest Coverage is 0.82, which is 98% below median its own 10-year median of 53.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Workforce Services stock overvalued right now?
Based on GuruFocus' analysis, Digital Workforce Services (FRA:DQ4) is currently considered Possible Value Trap. The stock's GF Value™ is €4.04, compared to a current price of €2.36 — trading 41.6% below its estimated fair value. The current Interest Coverage is 0.82, which is 98% below median its 10-year median of 53.60 and 96.7% below the Software industry median of 24.75. Digital Workforce Services' overall GF Score™ is 62/100 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 Digital Workforce Services (FRA:DQ4), the current Interest Coverage is 0.82 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 Digital Workforce Services (FRA:DQ4) Overvalued in 2026?

Based on GuruFocus' analysis, Digital Workforce Services stock appears to be undervalued. The current stock price of €2.36 is trading 41.6% below its estimated GF Value™ of €4.04. GuruFocus considers Digital Workforce Services to be Possible Value Trap.

Key valuation signals for FRA:DQ4:

  • Interest Coverage: 0.82 (98% below median its 10-year median of 53.60)
  • GF Value™: €4.04 vs. price of €2.36 (41.6% below fair value)
  • GF Score™: 62/100 with 7 warning signs
  • Industry Position: 96.7% below the Software median (#1577 of 1704)

No single metric tells the full story. See the FRA:DQ4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Digital Workforce Services Business Description

Other Exchanges DWF:Finland
Address WeLand, Itamerenkatu 25, Helsinki, FIN, 00180
Digital Workforce Services PLC provides business automation and technology solutions. With the Digital Workforce Outsmart platform and services including Enterprise AI agents organizations transform knowledge work, reduce costs, accelerate digitization, grow revenue, and improve customer experience. Its Design Services include Business Process Study, Process Redesign for Automation, and Advisory Se; and its Automation Delivery Services include IA Talent Augmentation, Implementation Projects, and Training and Mentoring. Geographically it operates in Finland, Sweden, Other Nordics, UK, Other EU, and Outside EU; deriving majority of the revenue from Finland.
62GF Score

Get the complete analysis for FRA:DQ4

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

€2.36
Price
€4.04
GF Value