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. The Descartes Systems Group's
Operating Income
for the
three
months ended in Apr. 2026 was MXN1,114 Mil. The Descartes Systems Group's Interest Expense for the
three
months ended in Apr. 2026 was MXN-4 Mil.
The Descartes Systems Group's interest coverage for the quarter that ended in Apr. 2026 was 269.50.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. The Descartes Systems Group Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for The Descartes Systems Group's Interest Coverage or its related term are showing as below:
MEX:DSG N'
s Interest Coverage Range Over the Past 10 Years
Min: 12.69 Med: 80.02 Max: 242.29
Current: 242.29
MEX:DSG N's Interest Coverage is ranked better than 77.42% of 1705
companies
in the Software industry
Industry Median: 24.67
vs MEX:DSG N: 242.29
The Descartes Systems Group (MEX:DSG N) 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 .
The Descartes Systems Group Interest Coverage Related Terms
The Descartes Systems Group Interest Coverage Historical Data
* 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.
The Descartes Systems Group Interest Coverage Chart
MEX:DSG N vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, The Descartes Systems 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.
The Descartes Systems Group Interest Coverage vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Interest Coverage falls into.
The Descartes Systems 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:
* 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 Descartes Systems Group (MEX:DSG N) has a Interest Coverage of 269.50 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Descartes Systems Group and its competitors. This is 237% above median its historical median of 80.02. Over the past decade, The Descartes Systems Group's Interest Coverage has ranged from 12.69 to 242.29. According to the industry distribution chart, The Descartes Systems Group ranks #385 out of 1705 companies in the Software industry, placing it in the top 22.6%.
Is The Descartes Systems Group's Interest Coverage too high?
The Descartes Systems Group's current Interest Coverage of 269.50 is 237% above median its 10-year median of 80.02. Over the past 10 years, this metric has ranged from a low of 12.69 to a high of 242.29. The Software industry median Interest Coverage is 24.67. The Descartes Systems Group's value of 269.50 is 992.4% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #385 out of 1705 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, The Descartes Systems Group has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #385 out of 1705 companies for Interest Coverage. This places The Descartes Systems Group in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.67. The Descartes Systems Group's value of 269.50 is 992.4% above this benchmark. Historically, The Descartes Systems Group's own Interest Coverage has ranged from 12.69 to 242.29 over the past decade. While the company's 10-year median is 80.02 vs. the industry median of 24.67, The Descartes Systems Group has consistently been above 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 Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 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. The Descartes Systems Group's current Interest Coverage of 269.50 is 992.4% above 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 The Descartes Systems Group and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Interest Coverage is 269.50, which is 237% above median its own 10-year median of 80.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
The Descartes Systems Group (MEX:DSG N) has a current Interest Coverage of 269.50. The stock's GF Value™ is MXN2,129.50, compared to a current price of MXN1,264.95 — trading 40.6% below its estimated fair value. The current Interest Coverage is 269.50, which is 237% above median its 10-year median of 80.02 and 992.4% above the Software industry median of 24.67. The Descartes Systems Group's overall GF Score™ is 85/100. 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 The Descartes Systems Group (MEX:DSG N), the current Interest Coverage is 269.50 as of Apr. 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 The Descartes Systems Group (MEX:DSG N) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of MXN1,264.95 is trading 40.6% below its estimated GF Value™ of MXN2,129.50.
Key valuation signals for MEX:DSG N:
Interest Coverage: 269.50 (237% above median its 10-year median of 80.02)
GF Value™: MXN2,129.50 vs. price of MXN1,264.95 (40.6% below fair value)
Industry Position: 992.4% above the Software median (#385 of 1705)
No single metric tells the full story. See the MEX:DSG N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
85GF Score
Get the complete analysis for MEX:DSG N
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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