IZM (ICZOOM Group) Interest Coverage: 3.02 (As of Jun. 2025) — 31% Above Median

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IZM ICZOOM Group Inc IZM
40 GF Score
Price $0.24
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What is ICZOOM Group Interest Coverage?

ICZOOM Group IZM +3.40% 40 Interest Coverage is 3.02 as of Jun. 2025, which is 31% above its 10-year median of 2.30. GuruFocus rates IZM with a GF Score™ of 40/100. The stock has 4 warning signs investors should review. Among 1,670 Hardware companies, ICZOOM Group ranks worse than 84.79% 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. ICZOOM Group's Operating Income for the six months ended in Jun. 2025 was $0.6 Mil. ICZOOM Group's Interest Expense for the six months ended in Jun. 2025 was $-0.2 Mil. ICZOOM Group's interest coverage for the quarter that ended in Jun. 2025 was 3.02. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ICZOOM Group's Interest Coverage or its related term are showing as below:

IZM' s Interest Coverage Range Over the Past 10 Years
Min: 1.22   Med: 2.3   Max: 10.46
Current: 2.83


IZM's Interest Coverage is ranked worse than
84.79% of 1670 companies
in the Hardware industry
Industry Median: 14.56 vs IZM: 2.83

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


ICZOOM Group  (NAS:IZM) 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 .


ICZOOM Group Interest Coverage Related Terms


ICZOOM Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for ICZOOM Group'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.

ICZOOM Group Interest Coverage Chart

ICZOOM Group Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial 4.22 10.46 1.77 0.00 2.83

ICZOOM Group Semi-Annual Data
Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.48 0.00 0.00 2.66 3.02

IZM vs TAIT, SNX, ARW: Interest Coverage Comparison

For the Electronics & Computer Distribution subindustry, ICZOOM Group'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.


ICZOOM Group Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, ICZOOM Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ICZOOM Group's Interest Coverage falls into.


IZM
40GF Score
ICZOOM Group Inc IZM
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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ICZOOM Group 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.

ICZOOM Group's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, ICZOOM Group's Interest Expense was $-0.4 Mil. Its Operating Income was $1.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.4 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*1.124/-0.397
=2.83

ICZOOM Group's Interest Coverage for the quarter that ended in Jun. 2025 is calculated as

Here, for the six months ended in Jun. 2025, ICZOOM Group's Interest Expense was $-0.2 Mil. Its Operating Income was $0.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2025 )/Interest Expense (Q: Jun. 2025 )
=-1*0.562/-0.186
=3.02

* 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 3.02 mean?
ICZOOM Group (IZM) has a Interest Coverage of 3.02 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ICZOOM Group and its competitors. This is 31% above median its historical median of 2.30. Over the past decade, ICZOOM Group's Interest Coverage has ranged from 1.22 to 10.46. According to the industry distribution chart, ICZOOM Group ranks #1416 out of 1670 companies in the Hardware industry, placing it in the top 84.8%.
Is ICZOOM Group's Interest Coverage too high?
ICZOOM Group's current Interest Coverage of 3.02 is 31% above median its 10-year median of 2.30. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 10.46. The Hardware industry median Interest Coverage is 14.56. ICZOOM Group's value of 3.02 is 79.3% below this industry median. Based on the distribution chart, ICZOOM Group ranks #1416 out of 1670 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, ICZOOM Group has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does ICZOOM Group's Interest Coverage compare to TAIT and SNX?
According to the Hardware industry distribution chart, ICZOOM Group ranks #1416 out of 1670 companies for Interest Coverage. This places ICZOOM Group in the lower half of its industry. The industry median Interest Coverage is 14.56. ICZOOM Group's value of 3.02 is 79.3% below this benchmark. Historically, ICZOOM Group's own Interest Coverage has ranged from 1.22 to 10.46 over the past decade. While the company's 10-year median is 2.30 vs. the industry median of 14.56, ICZOOM Group 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 Hardware company?
The median Interest Coverage among Hardware companies is 14.56, based on 1,670 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. ICZOOM Group's current Interest Coverage of 3.02 is 79.3% 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 ICZOOM Group and its competitors. For the Hardware industry, the median Interest Coverage is 14.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ICZOOM Group's current Interest Coverage is 3.02, which is 31% above median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ICZOOM Group stock overvalued right now?
ICZOOM Group (IZM) has a current Interest Coverage of 3.02. The current Interest Coverage is 3.02, which is 31% above median its 10-year median of 2.30 and 79.3% below the Hardware industry median of 14.56. ICZOOM Group's overall GF Score™ is 40/100 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 ICZOOM Group (IZM), the current Interest Coverage is 3.02 as of Jun. 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.

ICZOOM Group Business Description

Address No. 7018 Cai Tian Road, Room 3801, Building A, Sunhope e METRO, Futian District, Guangdong, Shenzhen, CHN, 518000
ICZOOM Group Inc. operates an e-commerce platform selling electronic components to SMEs in China across consumer electronics, IoT, automotive, and industrial control sectors. It offers two main product categories: semiconductor products, including integrated circuits and optoelectronics, and electronic equipment and tools such as electromechanical and MRO supplies. The company also provides services like customs clearance, temporary warehousing, and logistics, earning additional commission fees. The majority of its revenue comes from electronic component sales.
40GF Score

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