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. Grocery Outlet Holding's
Operating Income
for the
three
months ended in Mar. 2026 was $-2 Mil. Grocery Outlet Holding's Interest Expense for the
three
months ended in Mar. 2026 was $-7 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 Grocery Outlet Holding's Interest Coverage or its related term are showing as below:
GO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.46 Med: 3.07 Max: 6.2
Current: 2.37
GO's Interest Coverage is ranked worse than 84.65% of 254
companies
in the Retail - Defensive industry
Industry Median: 9.065
vs GO: 2.37
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 .
Grocery Outlet Holding Interest Coverage Related Terms
Grocery Outlet Holding Interest Coverage Historical Data
* Premium members only.
The historical data trend for Grocery Outlet Holding'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.
GO vs YSWY, VLGEA, NGVC: Interest Coverage Comparison
For the Grocery Stores subindustry, Grocery Outlet Holding'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.
Grocery Outlet Holding Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Grocery Outlet Holding's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Grocery Outlet Holding'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:
Grocery Outlet Holding 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?
Grocery Outlet Holding (GO) 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 Grocery Outlet Holding and its competitors. Over the past decade, Grocery Outlet Holding's Interest Coverage has ranged from 1.46 to 6.20. According to the industry distribution chart, Grocery Outlet Holding ranks #215 out of 254 companies in the Retail - Defensive industry, placing it in the top 84.6%.
Is Grocery Outlet Holding's Interest Coverage too high?
Grocery Outlet Holding's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 6.20. Based on the distribution chart, Grocery Outlet Holding ranks #215 out of 254 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Grocery Outlet Holding has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grocery Outlet Holding's Interest Coverage compare to YSWY and VLGEA?
According to the Retail - Defensive industry distribution chart, Grocery Outlet Holding ranks #215 out of 254 companies for Interest Coverage. This places Grocery Outlet Holding in the lower half of its industry. The industry median Interest Coverage is 9.07. Historically, Grocery Outlet Holding's own Interest Coverage has ranged from 1.46 to 6.20 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 Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 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 Grocery Outlet Holding and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grocery Outlet Holding'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 Grocery Outlet Holding stock overvalued right now?
Based on GuruFocus' analysis, Grocery Outlet Holding (GO) is currently considered Possible Value Trap. The stock's GF Value™ is $19.41, compared to a current price of $9.78 — trading 49.6% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Grocery Outlet Holding's overall GF Score™ is 63/100 with 4 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 Grocery Outlet Holding (GO), 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 Grocery Outlet Holding (GO) Overvalued in 2026?
Based on GuruFocus' analysis, Grocery Outlet Holding stock appears to be undervalued.
The current stock price of $9.78 is trading 49.6% below its estimated GF Value™ of $19.41.
GuruFocus considers Grocery Outlet Holding to be Possible Value Trap.
Key valuation signals for GO:
Interest Coverage: 0 (At Loss)
GF Value™: $19.41 vs. price of $9.78 (49.6% below fair value)
No single metric tells the full story. See the GO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grocery Outlet Holding Corp is a grocery store operator in the United States. It is a retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.
63GF Score
Get the complete analysis for GO
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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