Acer (LSE:ACIA) Interest Coverage: 5.57 (As of Dec. 2025) — 66% Below Median


What is Acer Interest Coverage?

Acer LSE:ACIA 79 Interest Coverage is 5.57 as of Dec. 2025, which is 66% below its 10-year median of 16.26. GuruFocus rates LSE:ACIA with a GF Score™ of 79/100. The stock has 7 warning signs investors should review. Among 1,672 Hardware companies, Acer ranks worse than 71.83% 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. Acer's Operating Income for the three months ended in Dec. 2025 was £44.46 Mil. Acer's Interest Expense for the three months ended in Dec. 2025 was £-7.98 Mil. Acer's interest coverage for the quarter that ended in Dec. 2025 was 5.57. The higher the ratio, the stronger the company's financial strength is.

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

LSE:ACIA' s Interest Coverage Range Over the Past 10 Years
Min: 4.77   Med: 16.26   Max: 57.54
Current: 5.52


LSE:ACIA's Interest Coverage is ranked worse than
71.83% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs LSE:ACIA: 5.52

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


Acer  (LSE:ACIA) 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 .


Acer Interest Coverage Related Terms


Acer Interest Coverage Historical Data

* Premium members only.

The historical data trend for Acer'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.

Acer Interest Coverage Chart

Acer 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 42.07 35.77 14.91 8.69 5.52

Acer Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 6.94 5.93 3.38 7.35 5.57

LSE:ACIA vs DELL, SNDK, ANET: Interest Coverage Comparison

For the Computer Hardware subindustry, Acer'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.


Acer Interest Coverage vs Hardware Industry

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

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



Acer 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.

Acer'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, Acer's Interest Expense was £-22.21 Mil. Its Operating Income was £122.56 Mil. And its Long-Term Debt & Capital Lease Obligation was £437.97 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*122.555/-22.209
=5.52

Acer's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Acer's Interest Expense was £-7.98 Mil. Its Operating Income was £44.46 Mil. And its Long-Term Debt & Capital Lease Obligation was £437.97 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*44.458/-7.983
=5.57

* 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 5.57 mean?
Acer (LSE:ACIA) has a Interest Coverage of 5.57 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Acer and its competitors. This is 66% below median its historical median of 16.26. Over the past decade, Acer's Interest Coverage has ranged from 4.77 to 57.54. According to the industry distribution chart, Acer ranks #1201 out of 1672 companies in the Hardware industry, placing it in the top 71.8%.
Is Acer's Interest Coverage too high?
Acer's current Interest Coverage of 5.57 is 66% below median its 10-year median of 16.26. Over the past 10 years, this metric has ranged from a low of 4.77 to a high of 57.54. The Hardware industry median Interest Coverage is 13.73. Acer's value of 5.57 is 59.4% below this industry median. Based on the distribution chart, Acer ranks #1201 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, Acer has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Acer's Interest Coverage compare to DELL and SNDK?
According to the Hardware industry distribution chart, Acer ranks #1201 out of 1672 companies for Interest Coverage. This places Acer in the lower half of its industry. The industry median Interest Coverage is 13.73. Acer's value of 5.57 is 59.4% below this benchmark. Historically, Acer's own Interest Coverage has ranged from 4.77 to 57.54 over the past decade. While the company's 10-year median is 16.26 vs. the industry median of 13.73, Acer 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 13.73, based on 1,672 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. Acer's current Interest Coverage of 5.57 is 59.4% 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 Acer and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Acer's current Interest Coverage is 5.57, which is 66% below median its own 10-year median of 16.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Acer stock overvalued right now?
Acer (LSE:ACIA) has a current Interest Coverage of 5.57. The current Interest Coverage is 5.57, which is 66% below median its 10-year median of 16.26 and 59.4% below the Hardware industry median of 13.73. Acer's overall GF Score™ is 79/100 with 7 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 Acer (LSE:ACIA), the current Interest Coverage is 5.57 as of Dec. 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.

Acer Business Description

Other Exchanges 2353:Taiwan
Address Sec. 1, Xintai 5th Road, 1st Floor, 88, Xizhi, Taipei, TWN, 221
Acer Inc is a hardware and electronics company specializing in electronics technology. Its products are sold under three brands: Acer, Gateway, and Packard Bell. It includes desktop PCs, clamshell laptops, 2-in-1 laptops, convertible laptops, Chromebooks, tablets, servers, storage devices, virtual reality devices, displays, smartphones, and peripherals. A large majority of the firm's revenue is derived from personal computers and the rest from peripherals and other products. The firm generates revenue in the Americas, Mainland China, Taiwan, and other countries across the world.