LEGO.U (Legato Merger IV) Interest Coverage: No Debt (1) (As of Feb. 2026)


LEGO.U Legato Merger Corp IV LEGO.U
13 GF Score
Price $10.03
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What is Legato Merger IV Interest Coverage?

Legato Merger IV LEGO.U 13 Interest Coverage is No Debt (1) as of Feb. 2026. GuruFocus rates LEGO.U with a GF Score™ of 13/100. Among 395 Diversified Financial Services companies, Legato Merger IV ranks better than 99.49% 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. Legato Merger IV's Operating Income for the three months ended in Feb. 2026 was $-0.06 Mil. Legato Merger IV's Interest Expense for the three months ended in Feb. 2026 was $0.00 Mil. Legato Merger IV has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Legato Merger Corp IV has no debt.

(1) 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.

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

LEGO.U' s Interest Coverage Range Over the Past 10 Years
Min: 0   Med: 0   Max: No Debt
Current: No Debt

LEGO.U's Interest Coverage is ranked better than
99.49% of 395 companies
in the Diversified Financial Services industry
Industry Median: No Debt vs LEGO.U: No Debt

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

Legato Merger IV  (AMEX:LEGO.U) 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 .

Legato Merger IV Interest Coverage Related Terms

Legato Merger IV Interest Coverage Historical Data

* Premium members only.

The historical data trend for Legato Merger IV'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.

Legato Merger IV Interest Coverage Chart

Legato Merger IV Annual Data
Trend
Interest Coverage

Legato Merger IV Quarterly Data
Sep25 Feb26
Interest Coverage No Debt No Debt

LEGO.U vs AACO, ILLU, LPAA: Interest Coverage Comparison

For the Shell Companies subindustry, Legato Merger IV'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.

Legato Merger IV Interest Coverage vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Legato Merger IV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Legato Merger IV's Interest Coverage falls into.


LEGO.U
13GF Score
Legato Merger Corp IV LEGO.U
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Legato Merger IV 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.

Legato Merger IV's Interest Coverage for the fiscal year that ended in . 20 is calculated as

Here, for the fiscal year that ended in . 20, Legato Merger IV's Interest Expense was $0.00 Mil. Its Operating Income was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Legato Merger IV had no debt (1).

Legato Merger IV's Interest Coverage for the quarter that ended in Feb. 2026 is calculated as

Here, for the three months ended in Feb. 2026, Legato Merger IV's Interest Expense was $0.00 Mil. Its Operating Income was $-0.06 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Legato Merger IV had no debt (1).

* 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 No Debt <sup>(1)</sup> mean?
Legato Merger IV (LEGO.U) has a Interest Coverage of No Debt (1) as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Legato Merger IV and its competitors. According to the industry distribution chart, Legato Merger IV ranks #2 out of 395 companies in the Diversified Financial Services industry, placing it in the top 0.5%.
Is Legato Merger IV's Interest Coverage too high?
Legato Merger IV's current Interest Coverage is No Debt (1). Based on the distribution chart, Legato Merger IV ranks #2 out of 395 companies in the Diversified Financial Services industry, which is in the top quartile — a strong position relative to peers. Overall, Legato Merger IV has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Legato Merger IV's Interest Coverage compare to AACO and ILLU?
According to the Diversified Financial Services industry distribution chart, Legato Merger IV ranks #2 out of 395 companies for Interest Coverage. This places Legato Merger IV in the top 1% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10,000.00. 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 Diversified Financial Services company?
The median Interest Coverage among Diversified Financial Services companies is 10,000.00, based on 395 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 Legato Merger IV and its competitors. For the Diversified Financial Services industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legato Merger IV's current Interest Coverage is No Debt (1). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legato Merger IV stock overvalued right now?
Legato Merger IV (LEGO.U) has a current Interest Coverage of No Debt (1). The current Interest Coverage is No Debt (1). Legato Merger IV's overall GF Score™ is 13/100. 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 Legato Merger IV (LEGO.U), the current Interest Coverage is No Debt (1) as of Feb. 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.

Legato Merger IV Business Description

Other Exchanges LEGO:USA
Address 777 Third Avenue, 37th Floor, New York, NY, USA, 10017
Legato Merger Corp IV is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.
13GF Score

Get the complete analysis for LEGO.U

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

$10.03
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