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. Hertz Global Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $-83 Mil. Hertz Global Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-256 Mil.
did not have earnings to cover the interest expense.
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. Hertz Global Holdings Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Hertz Global Holdings's Interest Coverage or its related term are showing as below:
HTZ'
s Interest Coverage Range Over the Past 10 Years
Min: 0.01 Med: 0.77 Max: 6.33
Current: 0.11
HTZ's Interest Coverage is ranked worse than 98.65% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs HTZ: 0.11
Hertz Global Holdings (NAS:HTZ) 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 .
Hertz Global Holdings Interest Coverage Related Terms
Hertz Global Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hertz Global Holdings'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.
HTZ vs VSTS, PRG, WLFC: Interest Coverage Comparison
For the Rental & Leasing Services subindustry, Hertz Global Holdings'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.
Hertz Global Holdings Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Hertz Global Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hertz Global Holdings's Interest Coverage falls into.
Hertz Global Holdings 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:
Hertz Global Holdings 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?
Hertz Global Holdings (HTZ) 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 Hertz Global Holdings and its competitors. Over the past decade, Hertz Global Holdings' Interest Coverage has ranged from 0.01 to 6.33. According to the industry distribution chart, Hertz Global Holdings ranks #801 out of 812 companies in the Business Services industry, placing it in the top 98.6%.
Is Hertz Global Holdings' Interest Coverage too high?
Hertz Global Holdings' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 6.33. Based on the distribution chart, Hertz Global Holdings ranks #801 out of 812 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Hertz Global Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hertz Global Holdings' Interest Coverage compare to VSTS and PRG?
According to the Business Services industry distribution chart, Hertz Global Holdings ranks #801 out of 812 companies for Interest Coverage. This places Hertz Global Holdings in the lower half of its industry. The industry median Interest Coverage is 12.98. Historically, Hertz Global Holdings' own Interest Coverage has ranged from 0.01 to 6.33 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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 Hertz Global Holdings and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hertz Global Holdings'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 Hertz Global Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hertz Global Holdings (HTZ) is currently considered Possible Value Trap. The stock's GF Value™ is $5.58, compared to a current price of $3.20 — trading 42.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Hertz Global Holdings' overall GF Score™ is 70/100 with 9 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 Hertz Global Holdings (HTZ), 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 Hertz Global Holdings (HTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Hertz Global Holdings stock appears to be undervalued.
The current stock price of $3.20 is trading 42.7% below its estimated GF Value™ of $5.58.
GuruFocus considers Hertz Global Holdings to be Possible Value Trap.
Key valuation signals for HTZ:
Interest Coverage: 0 (At Loss)
GF Value™: $5.58 vs. price of $3.20 (42.7% below fair value)
No single metric tells the full story. See the HTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hertz Global Holdings Inc is engaged principally in the business of renting vehicles through its Hertz, Dollar and Thrifty brands. The company has two reportable segments: i) Americas RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America and the Caribbean, ii) International RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The company maintains a substantial network of company-operated rental locations, a majority of which are in Europe, and has franchisees and partners that operate rental locations under brands. Geographical markets include North America, Europe, Pacific Asia, Middle East and Africa, and Latin America.
70GF Score
Get the complete analysis for HTZ
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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