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.
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.
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. Annaly Capital Management's
Operating Income
for the
three
months ended in Jun. 2026 was $2,159 Mil. Annaly Capital Management's Interest Expense for the
three
months ended in Jun. 2026 was $0 Mil.
Annaly Capital Management's interest coverage for the quarter that ended in Jun. 2026 was 1.63.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Annaly Capital Management's Interest Coverage or its related term are showing as below:
NLY's Interest Coverage is not ranked *
in the REITs industry.
Industry Median: 3.07 * Ranked among companies with meaningful Interest Coverage only.
Annaly Capital Management (NYSE:NLY) 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 .
Annaly Capital Management Interest Coverage Related Terms
Annaly Capital Management 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.
NLY vs AGNC, STWD, RITM: Interest Coverage Comparison
For the REIT - Mortgage subindustry, Annaly Capital Management'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.
Annaly Capital Management Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Annaly Capital Management's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Annaly Capital Management's Interest Coverage falls into.
Annaly Capital Management 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.
Annaly Capital Management (NLY) has a Interest Coverage of 1.63 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Annaly Capital Management and its competitors. According to the industry distribution chart, Annaly Capital Management ranks #999999 out of 683 companies in the REITs industry.
Is Annaly Capital Management's Interest Coverage too high?
Annaly Capital Management's current Interest Coverage is 1.63. The REITs industry median Interest Coverage is 3.07. Annaly Capital Management's value of 1.63 is 46.9% below this industry median. Based on the distribution chart, Annaly Capital Management ranks #999999 out of 683 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Annaly Capital Management has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Annaly Capital Management's Interest Coverage compare to AGNC and STWD?
According to the REITs industry distribution chart, Annaly Capital Management ranks #999999 out of 683 companies for Interest Coverage. This places Annaly Capital Management in the lower half of its industry. The industry median Interest Coverage is 3.07. Annaly Capital Management's value of 1.63 is 46.9% below this benchmark. 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 REITs company?
The median Interest Coverage among REITs companies is 3.07, based on 683 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. Annaly Capital Management's current Interest Coverage of 1.63 is 46.9% 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 Annaly Capital Management and its competitors. For the REITs industry, the median Interest Coverage is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Annaly Capital Management's current Interest Coverage is 1.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Annaly Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Annaly Capital Management (NLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.70, compared to a current price of $21.41 — trading 20.9% above its estimated fair value. The current Interest Coverage is 1.63 and 46.9% below the REITs industry median of 3.07. Annaly Capital Management's overall GF Score™ is 47/100 with 8 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 Annaly Capital Management (NLY), the current Interest Coverage is 1.63 as of Jun. 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 Annaly Capital Management (NLY) Overvalued in 2026?
Based on GuruFocus' analysis, Annaly Capital Management stock appears to be overvalued.
The current stock price of $21.41 is trading 20.9% above its estimated GF Value™ of $17.70.
GuruFocus considers Annaly Capital Management to be Modestly Overvalued.
Key valuation signals for NLY:
Interest Coverage: 1.63
GF Value™: $17.70 vs. price of $21.41 (20.9% above fair value)
Industry Position: 46.9% below the REITs median (#999999 of 683)
No single metric tells the full story. See the NLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Annaly Capital Management Inc is an American mortgage real estate investment trust. Its business objective is to generate net income for distribution to its stockholders and optimize its returns through prudent management of its diversified investment strategies. The company's reportable operating segments are: the Agency segment, which invests in Agency mortgage-backed securities collateralized by residential mortgages; the Residential Credit segment, which invests in non-Agency residential whole loans and securitized products within the residential and commercial markets; the Mortgage Servicing Rights segment; and Corporate & Other. Maximum revenue for the company is generated from its Agency segment.
47GF Score
Get the complete analysis for NLY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NLY has been successfully added to your 
