Select Technologies (KAR:SELECT) Interest Coverage: 1.74 (As of Jun. 2025) — 16% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KAR:SELECT Select Technologies Ltd KAR:SELECT
17 GF Score
Price ₨26.53
! 2 Warning Signs
View Full Analysis

What is Select Technologies Interest Coverage?

Select Technologies KAR:SELECT -4.05% 17 Interest Coverage is 1.74 as of Jun. 2025, which is 16% below its 10-year median of 2.08. GuruFocus rates KAR:SELECT with a GF Score™ of 17/100. The stock has 2 warning signs investors should review. Among 1,669 Hardware companies, Select Technologies ranks worse than 90.71% 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. Select Technologies's Operating Income for the six months ended in Jun. 2025 was ₨3,849 Mil. Select Technologies's Interest Expense for the six months ended in Jun. 2025 was ₨-2,210 Mil. Select Technologies's interest coverage for the quarter that ended in Jun. 2025 was 1.74. The higher the ratio, the stronger the company's financial strength is.

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

KAR:SELECT' s Interest Coverage Range Over the Past 10 Years
Min: 1.74   Med: 2.08   Max: 2.42
Current: 1.74

KAR:SELECT's Interest Coverage is ranked worse than
90.71% of 1669 companies
in the Hardware industry
Industry Median: 15.08 vs KAR:SELECT: 1.74

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

Select Technologies  (KAR:SELECT) 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 .

Select Technologies Interest Coverage Related Terms

Select Technologies Interest Coverage Historical Data

* Premium members only.

The historical data trend for Select Technologies'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.

Select Technologies Interest Coverage Chart

Select Technologies Annual Data
Trend Jun24 Jun25
Interest Coverage
2.42 1.74

Select Technologies Semi-Annual Data
Jun24 Jun25
Interest Coverage 2.42 1.74

KAR:SELECT vs AAPL: Interest Coverage Comparison

For the Consumer Electronics subindustry, Select Technologies'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.

Select Technologies Interest Coverage vs Hardware Industry

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

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


KAR:SELECT
17GF Score
Select Technologies Ltd KAR:SELECT
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Select Technologies 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.

Select Technologies'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, Select Technologies's Interest Expense was ₨-2,210 Mil. Its Operating Income was ₨3,849 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,072 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*3848.993/-2209.543
=1.74

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

Here, for the six months ended in Jun. 2025, Select Technologies's Interest Expense was ₨-2,210 Mil. Its Operating Income was ₨3,849 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,072 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2025 )/Interest Expense (Q: Jun. 2025 )
=-1*3848.993/-2209.543
=1.74

* 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 1.74 mean?
Select Technologies (KAR:SELECT) has a Interest Coverage of 1.74 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Select Technologies and its competitors. This is 16% below median its historical median of 2.08. Over the past decade, Select Technologies' Interest Coverage has ranged from 1.74 to 2.42. According to the industry distribution chart, Select Technologies ranks #1514 out of 1669 companies in the Hardware industry, placing it in the top 90.7%.
Is Select Technologies' Interest Coverage too high?
Select Technologies' current Interest Coverage of 1.74 is 16% below median its 10-year median of 2.08. Over the past 10 years, this metric has ranged from a low of 1.74 to a high of 2.42. The Hardware industry median Interest Coverage is 15.08. Select Technologies' value of 1.74 is 88.5% below this industry median. Based on the distribution chart, Select Technologies ranks #1514 out of 1669 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Select Technologies has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Select Technologies' Interest Coverage compare to AAPL?
According to the Hardware industry distribution chart, Select Technologies ranks #1514 out of 1669 companies for Interest Coverage. This places Select Technologies in the lower half of its industry. The industry median Interest Coverage is 15.08. Select Technologies' value of 1.74 is 88.5% below this benchmark. Historically, Select Technologies' own Interest Coverage has ranged from 1.74 to 2.42 over the past decade. While the company's 10-year median is 2.08 vs. the industry median of 15.08, Select Technologies 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 15.08, based on 1,669 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. Select Technologies's current Interest Coverage of 1.74 is 88.5% 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 Select Technologies and its competitors. For the Hardware industry, the median Interest Coverage is 15.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Select Technologies's current Interest Coverage is 1.74, which is 16% below median its own 10-year median of 2.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Select Technologies stock overvalued right now?
Select Technologies (KAR:SELECT) has a current Interest Coverage of 1.74. The current Interest Coverage is 1.74, which is 16% below median its 10-year median of 2.08 and 88.5% below the Hardware industry median of 15.08. Select Technologies' overall GF Score™ is 17/100 with 2 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 Select Technologies (KAR:SELECT), the current Interest Coverage is 1.74 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.

Select Technologies Business Description

Address 152-1-M Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore, PB, PAK
Select Technologies Ltd is a Pakistan-based company. The Company is engaged in the manufacturing and assembly of smartphones and other consumer appliances in Pakistan. The idea is to promote 'Made in Pakistan' products and to create employment opportunities for skilled and unskilled labour.
17GF Score

Get the complete analysis for KAR:SELECT

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

₨26.53
Price