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. Erayak Power Solution Group's
Operating Income
for the
six
months ended in Dec. 2025 was $-0.86 Mil. Erayak Power Solution Group's Interest Expense for the
six
months ended in Dec. 2025 was $-0.20 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Erayak Power Solution Group's Interest Coverage or its related term are showing as below:
RAYA's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.8 * Ranked among companies with meaningful Interest Coverage only.
Erayak Power Solution Group (NAS:RAYA) 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 .
Erayak Power Solution Group Interest Coverage Related Terms
Erayak Power Solution 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.
Erayak Power Solution Group Interest Coverage Chart
RAYA vs TOGI, LNKS, PWDY: Interest Coverage Comparison
For the Electrical Equipment & Parts subindustry, Erayak Power Solution 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.
Erayak Power Solution Group Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Erayak Power Solution Group's Interest Coverage falls into.
Erayak Power Solution 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:
Erayak Power Solution Group did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Erayak Power Solution Group (RAYA) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Erayak Power Solution Group and its competitors. According to the industry distribution chart, Erayak Power Solution Group ranks #999999 out of 2329 companies in the Industrial Products industry.
Is Erayak Power Solution Group's Interest Coverage too high?
Erayak Power Solution Group's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Erayak Power Solution Group ranks #999999 out of 2329 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Erayak Power Solution Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Erayak Power Solution Group's Interest Coverage compare to TOGI and LNKS?
According to the Industrial Products industry distribution chart, Erayak Power Solution Group ranks #999999 out of 2329 companies for Interest Coverage. This places Erayak Power Solution Group in the lower half of its industry. The industry median Interest Coverage is 14.80. 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,329 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 Erayak Power Solution Group and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erayak Power Solution Group's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erayak Power Solution Group stock overvalued right now?
Based on GuruFocus' analysis, Erayak Power Solution Group (RAYA) is currently considered Possible Value Trap. The stock's GF Value™ is $2,190.03, compared to a current price of $2.56 — trading 99.9% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Erayak Power Solution Group's overall GF Score™ is 51/100 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 Erayak Power Solution Group (RAYA), the current Interest Coverage is 0 (At Loss) 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 Erayak Power Solution Group (RAYA) Overvalued in 2026?
Based on GuruFocus' analysis, Erayak Power Solution Group stock appears to be undervalued.
The current stock price of $2.56 is trading 99.9% below its estimated GF Value™ of $2,190.03.
GuruFocus considers Erayak Power Solution Group to be Possible Value Trap.
Key valuation signals for RAYA:
Interest Coverage: 0 (At Loss)
GF Value™: $2,190.03 vs. price of $2.56 (99.9% below fair value)
No single metric tells the full story. See the RAYA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Erayak Power Solution Group Inc is engaged in the manufacturing, research and development (R&D), and wholesale and retail of power solution products. The group focuses on manufacturing new energy storage and inverter devices. Its product portfolio includes sine wave and off-grid inverters, inverters and gasoline generators, battery and smart chargers, and custom-designed products. The products are used principally in agricultural and industrial vehicles, recreational vehicles (RVs), electrical appliances, and outdoor living products. The company generates the majority of its revenue from Inverters. The company generates revenue from five main markets, which are China, Poland, Mexico, the U.K., and Portugal. It derives maximum revenue from China.
51GF Score
Get the complete analysis for RAYA
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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