Wesfarmers (MEX:WESN) Interest Coverage: 34.41 (As of Dec. 2025) — 62% Above Median


MEX:WESN Wesfarmers Ltd MEX:WESN
85 GF Score
Price MXN940.00
GF Value MXN813.29
! 7 Warning Signs
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What is Wesfarmers Interest Coverage?

Wesfarmers MEX:WESN 85 Interest Coverage is 34.41 as of Dec. 2025, which is 62% above its 10-year median of 21.30. GuruFocus rates MEX:WESN with a GF Score™ of 85/100 and a GF Value™ of MXN813.29. The stock has 7 warning signs investors should review. Among 828 Retail - Cyclical companies, Wesfarmers ranks better than 76.69% 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. Wesfarmers's Operating Income for the six months ended in Dec. 2025 was MXN27,170 Mil. Wesfarmers's Interest Expense for the six months ended in Dec. 2025 was MXN-790 Mil. Wesfarmers's interest coverage for the quarter that ended in Dec. 2025 was 34.41. The higher the ratio, the stronger the company's financial strength is.

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

MEX:WESN' s Interest Coverage Range Over the Past 10 Years
Min: 8.77   Med: 21.3   Max: 32.86
Current: 28.12


MEX:WESN's Interest Coverage is ranked better than
76.69% of 828 companies
in the Retail - Cyclical industry
Industry Median: 7.915 vs MEX:WESN: 28.12

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


Wesfarmers  (MEX:WESN) 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 .


Wesfarmers Interest Coverage Related Terms


Wesfarmers Interest Coverage Historical Data

* Premium members only.

The historical data trend for Wesfarmers'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.

Wesfarmers Interest Coverage Chart

Wesfarmers Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.13 32.86 26.44 22.33 24.34

Wesfarmers Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 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 25.54 19.27 25.98 22.51 34.41

MEX:WESN vs HD, LOW, FND: Interest Coverage Comparison

For the Home Improvement Retail subindustry, Wesfarmers'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.


Wesfarmers Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Interest Coverage distribution charts can be found below:

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


MEX:WESN
85GF Score
Wesfarmers Ltd MEX:WESN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Wesfarmers 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.

Wesfarmers'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, Wesfarmers's Interest Expense was MXN-1,925 Mil. Its Operating Income was MXN46,852 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN122,819 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*46852.345/-1924.599
=24.34

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

Here, for the six months ended in Dec. 2025, Wesfarmers's Interest Expense was MXN-790 Mil. Its Operating Income was MXN27,170 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN137,501 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*27170.063/-789.619
=34.41

* 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 34.41 mean?
Wesfarmers (MEX:WESN) has a Interest Coverage of 34.41 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Wesfarmers and its competitors. This is 62% above median its historical median of 21.30. Over the past decade, Wesfarmers' Interest Coverage has ranged from 8.77 to 32.86. According to the industry distribution chart, Wesfarmers ranks #193 out of 828 companies in the Retail - Cyclical industry, placing it in the top 23.3%.
Is Wesfarmers' Interest Coverage too high?
Wesfarmers' current Interest Coverage of 34.41 is 62% above median its 10-year median of 21.30. Over the past 10 years, this metric has ranged from a low of 8.77 to a high of 32.86. The Retail - Cyclical industry median Interest Coverage is 7.92. Wesfarmers' value of 34.41 is 334.7% above this industry median. Based on the distribution chart, Wesfarmers ranks #193 out of 828 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Wesfarmers has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Wesfarmers' Interest Coverage compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #193 out of 828 companies for Interest Coverage. This places Wesfarmers in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.92. Wesfarmers' value of 34.41 is 334.7% above this benchmark. Historically, Wesfarmers' own Interest Coverage has ranged from 8.77 to 32.86 over the past decade. While the company's 10-year median is 21.30 vs. the industry median of 7.92, Wesfarmers 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 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. Wesfarmers's current Interest Coverage of 34.41 is 334.7% 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 Wesfarmers and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current Interest Coverage is 34.41, which is 62% above median its own 10-year median of 21.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wesfarmers stock overvalued right now?
Wesfarmers (MEX:WESN) has a current Interest Coverage of 34.41. The stock's GF Value™ is MXN813.29, compared to a current price of MXN940.00 — trading 15.6% above its estimated fair value. The current Interest Coverage is 34.41, which is 62% above median its 10-year median of 21.30 and 334.7% above the Retail - Cyclical industry median of 7.92. Wesfarmers' overall GF Score™ is 85/100 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 Wesfarmers (MEX:WESN), the current Interest Coverage is 34.41 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.

Is Wesfarmers (MEX:WESN) Overvalued in 2026?

Based on GuruFocus' analysis, Wesfarmers stock appears to be overvalued. The current stock price of MXN940.00 is trading 15.6% above its estimated GF Value™ of MXN813.29.

Key valuation signals for MEX:WESN:

  • Interest Coverage: 34.41 (62% above median its 10-year median of 21.30)
  • GF Value™: MXN813.29 vs. price of MXN940.00 (15.6% above fair value)
  • GF Score™: 85/100 with 7 warning signs
  • Industry Position: 334.7% above the Retail - Cyclical median (#193 of 828)

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


Wesfarmers Business Description

Address 123 St Georges Terrace, Level 14, Brookfield Place Tower 2, Perth, WA, AUS, 6000
Wesfarmers is Australia's largest conglomerate. Its retail operations include the Bunnings hardware chain (number one in market share), discount department stores Kmart and Target (number one and three), and Officeworks in office supplies (number one). These activities account for the vast majority of group earnings before taxes. Other operations include chemicals and fertilizers, lithium mining, industrial and safety supplies, and health. Management is focused on generating cash and creating shareholder wealth in the long term.
85GF Score

Get the complete analysis for MEX:WESN

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

MXN940.00
Price
MXN813.29
GF Value