Avanceon (KAR:AVN) Interest Coverage: 2.05 (As of Mar. 2026) — 82% Below Median


KAR:AVN Avanceon Ltd KAR:AVN
61 GF Score
Price ₨37.58
GF Value ₨53.73
Valuation Possible Value Trap
! 11 Warning Signs
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What is Avanceon Interest Coverage?

Avanceon KAR:AVN 61 Interest Coverage is 2.05 as of Mar. 2026, which is 82% below its 10-year median of 11.37. GuruFocus rates KAR:AVN with a GF Score™ of 61/100 and a GF Value™ of ₨53.73 (Possible Value Trap). The stock has 11 warning signs investors should review. Among 426 Conglomerates companies, Avanceon ranks better than 50.7% 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. Avanceon's Operating Income for the three months ended in Mar. 2026 was ₨192 Mil. Avanceon's Interest Expense for the three months ended in Mar. 2026 was ₨-94 Mil. Avanceon's interest coverage for the quarter that ended in Mar. 2026 was 2.05. The higher the ratio, the stronger the company's financial strength is.

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

KAR:AVN' s Interest Coverage Range Over the Past 10 Years
Min: 5.19   Med: 11.37   Max: 22.2
Current: 5.54


KAR:AVN's Interest Coverage is ranked better than
50.7% of 426 companies
in the Conglomerates industry
Industry Median: 5.31 vs KAR:AVN: 5.54

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


Avanceon  (KAR:AVN) 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 .


Avanceon Interest Coverage Related Terms


Avanceon Interest Coverage Historical Data

* Premium members only.

The historical data trend for Avanceon'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.

Avanceon Interest Coverage Chart

Avanceon Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.20 10.96 12.44 10.22 5.19

Avanceon Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.85 0.00 0.00 0.00 2.05

KAR:AVN vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Avanceon'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.


Avanceon Interest Coverage vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Avanceon's Interest Coverage distribution charts can be found below:

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


KAR:AVN
61GF Score
Avanceon Ltd KAR:AVN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Avanceon 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.

Avanceon'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, Avanceon's Interest Expense was ₨-255 Mil. Its Operating Income was ₨1,323 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨287 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1322.602/-254.889
=5.19

Avanceon's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Avanceon's Interest Expense was ₨-94 Mil. Its Operating Income was ₨192 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨269 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*192.07/-93.907
=2.05

* 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 2.05 mean?
Avanceon (KAR:AVN) has a Interest Coverage of 2.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avanceon and its competitors. This is 82% below median its historical median of 11.37. Over the past decade, Avanceon's Interest Coverage has ranged from 5.19 to 22.20. According to the industry distribution chart, Avanceon ranks #210 out of 426 companies in the Conglomerates industry, placing it in the top 49.3%.
Is Avanceon's Interest Coverage too high?
Avanceon's current Interest Coverage of 2.05 is 82% below median its 10-year median of 11.37. Over the past 10 years, this metric has ranged from a low of 5.19 to a high of 22.20. The Conglomerates industry median Interest Coverage is 5.31. Avanceon's value of 2.05 is 61.4% below this industry median. Based on the distribution chart, Avanceon ranks #210 out of 426 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Avanceon has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Avanceon's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Avanceon ranks #210 out of 426 companies for Interest Coverage. This puts Avanceon in the upper half of its industry. The industry median Interest Coverage is 5.31. Avanceon's value of 2.05 is 61.4% below this benchmark. Historically, Avanceon's own Interest Coverage has ranged from 5.19 to 22.20 over the past decade. While the company's 10-year median is 11.37 vs. the industry median of 5.31, Avanceon 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.31, based on 426 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. Avanceon's current Interest Coverage of 2.05 is 61.4% 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 Avanceon and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanceon's current Interest Coverage is 2.05, which is 82% below median its own 10-year median of 11.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanceon stock overvalued right now?
Based on GuruFocus' analysis, Avanceon (KAR:AVN) is currently considered Possible Value Trap. The stock's GF Value™ is ₨53.73, compared to a current price of ₨37.58 — trading 30.1% below its estimated fair value. The current Interest Coverage is 2.05, which is 82% below median its 10-year median of 11.37 and 61.4% below the Conglomerates industry median of 5.31. Avanceon's overall GF Score™ is 61/100 with 11 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 Avanceon (KAR:AVN), the current Interest Coverage is 2.05 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 Avanceon (KAR:AVN) Overvalued in 2026?

Based on GuruFocus' analysis, Avanceon stock appears to be undervalued. The current stock price of ₨37.58 is trading 30.1% below its estimated GF Value™ of ₨53.73. GuruFocus considers Avanceon to be Possible Value Trap.

Key valuation signals for KAR:AVN:

  • Interest Coverage: 2.05 (82% below median its 10-year median of 11.37)
  • GF Value™: ₨53.73 vs. price of ₨37.58 (30.1% below fair value)
  • GF Score™: 61/100 with 11 warning signs
  • Industry Position: 61.4% below the Conglomerates median (#210 of 426)

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


Avanceon Business Description

Address 19-KM, Main Multan Road, The Avanceon Building, Lahore, PB, PAK, 54660
Avanceon Ltd provides total engineering solutions. The principal activity of the Company is to provide industrial automation, process control, and systems integration solutions, to trade in products of automation and control equipment, and to provide related technical services. It offers various solutions such as Automation, Project Management, Consulting, the Industrial Internet of Things, Serialization, and others. The firm's segment includes Core Business, Specialized Business, Engineering and Back Office, After Market Support, Manufacturing and Assembling, and the Middle East. Geographically, the company generates revenue from Qatar, Pakistan, the Kingdom of Saudi Arabia, and the United Arab Emirates.
61GF Score

Get the complete analysis for KAR:AVN

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

₨37.58
Price
₨53.73
GF Value