Cherry Trading Co (SAU:4265) Interest Coverage: 2.28 (As of Dec. 2025) — Near Median

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

SAU:4265 Cherry Trading Co SAU:4265
13 GF Score
Price ﷼23.26
! 4 Warning Signs
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What is Cherry Trading Co Interest Coverage?

Cherry Trading Co SAU:4265 +0.26% 13 Interest Coverage is 2.28 as of Dec. 2025, which is 7% below its 10-year median of 2.46. GuruFocus rates SAU:4265 with a GF Score™ of 13/100. The stock has 4 warning signs investors should review. Among 812 Business Services companies, Cherry Trading Co ranks worse than 82.76% 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. Cherry Trading Co's Operating Income for the six months ended in Dec. 2025 was ﷼135.2 Mil. Cherry Trading Co's Interest Expense for the six months ended in Dec. 2025 was ﷼-59.3 Mil. Cherry Trading Co's interest coverage for the quarter that ended in Dec. 2025 was 2.28. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Cherry Trading Co interest coverage is 2.28, which is low.

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

SAU:4265' s Interest Coverage Range Over the Past 10 Years
Min: 2.28   Med: 2.46   Max: 2.63
Current: 2.28


SAU:4265's Interest Coverage is ranked worse than
82.76% of 812 companies
in the Business Services industry
Industry Median: 13.07 vs SAU:4265: 2.28

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


Cherry Trading Co  (SAU:4265) 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 .


Cherry Trading Co Interest Coverage Related Terms


Cherry Trading Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Cherry Trading Co'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.

Cherry Trading Co Interest Coverage Chart

Cherry Trading Co Annual Data
Trend Dec24 Dec25
Interest Coverage
2.63 2.28

Cherry Trading Co Semi-Annual Data
Dec24 Dec25
Interest Coverage 2.63 2.28

SAU:4265 vs URI, SUNB, AER: Interest Coverage Comparison

For the Rental & Leasing Services subindustry, Cherry Trading Co'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.


Cherry Trading Co Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Cherry Trading Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cherry Trading Co's Interest Coverage falls into.


SAU:4265
13GF Score
Cherry Trading Co SAU:4265
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Cherry Trading Co 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.

Cherry Trading Co'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, Cherry Trading Co's Interest Expense was ﷼-59.3 Mil. Its Operating Income was ﷼135.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼561.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*135.179/-59.293
=2.28

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

Here, for the six months ended in Dec. 2025, Cherry Trading Co's Interest Expense was ﷼-59.3 Mil. Its Operating Income was ﷼135.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼561.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*135.179/-59.293
=2.28

* 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 2.28 mean?
Cherry Trading Co (SAU:4265) has a Interest Coverage of 2.28 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cherry Trading Co and its competitors. This is near median its historical median of 2.46. Over the past decade, Cherry Trading Co's Interest Coverage has ranged from 2.28 to 2.63. According to the industry distribution chart, Cherry Trading Co ranks #672 out of 812 companies in the Business Services industry, placing it in the top 82.8%.
Is Cherry Trading Co's Interest Coverage too high?
Cherry Trading Co's current Interest Coverage of 2.28 is near median its 10-year median of 2.46. Over the past 10 years, this metric has ranged from a low of 2.28 to a high of 2.63. The Business Services industry median Interest Coverage is 13.07. Cherry Trading Co's value of 2.28 is 82.6% below this industry median. Based on the distribution chart, Cherry Trading Co ranks #672 out of 812 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Cherry Trading Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Cherry Trading Co's Interest Coverage compare to URI and SUNB?
According to the Business Services industry distribution chart, Cherry Trading Co ranks #672 out of 812 companies for Interest Coverage. This places Cherry Trading Co in the lower half of its industry. The industry median Interest Coverage is 13.07. Cherry Trading Co's value of 2.28 is 82.6% below this benchmark. Historically, Cherry Trading Co's own Interest Coverage has ranged from 2.28 to 2.63 over the past decade. While the company's 10-year median is 2.46 vs. the industry median of 13.07, Cherry Trading Co 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 Business Services company?
The median Interest Coverage among Business Services companies is 13.07, based on 812 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. Cherry Trading Co's current Interest Coverage of 2.28 is 82.6% 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 Cherry Trading Co and its competitors. For the Business Services industry, the median Interest Coverage is 13.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherry Trading Co's current Interest Coverage is 2.28, which is near median its own 10-year median of 2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherry Trading Co stock overvalued right now?
Cherry Trading Co (SAU:4265) has a current Interest Coverage of 2.28. The current Interest Coverage is 2.28, which is near median its 10-year median of 2.46 and 82.6% below the Business Services industry median of 13.07. Cherry Trading Co's overall GF Score™ is 13/100 with 4 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 Cherry Trading Co (SAU:4265), the current Interest Coverage is 2.28 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.

Cherry Trading Co Business Description

Address 2623 Dammam Branch Road, Ghirnatah district, Riyadh, SAU, 13242-8025
Cherry Trading Co is engaged in wholesale and retail trade of new and used private cars, car service and maintenance center activities, public fare and school transportation, real estate management for commission, and passenger car rental. The company also provides crane rental with operator, rental and operational leasing of passenger cars, trucks, utility trailers, recreational vehicles, buses, electronic car rental, machine tools, public taxi, educational transport, light goods transport, and wholesale and retail sale of used specialized passenger vehicles, including ambulances, minibuses, and jeeps. The group operates through three segments: Long-Term Lease, Short-Term Rental, and Sales of Motor Vehicles, with the Long-Term Lease segment generating the maximum revenue.
13GF Score

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

﷼23.26
Price