LG (XKRX:003550) Interest Coverage: 99.85 (As of Jun. 2026) — 196% Above Median

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XKRX:003550 LG Corp XKRX:003550
87 GF Score
Price ₩118,500.00
GF Value ₩85,021.53
Valuation Significantly Overvalued
! 5 Warning Signs
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What is LG Interest Coverage?

LG XKRX:003550 -1.50% 87 Interest Coverage is 99.85 as of Jun. 2026, which is 196% above its 10-year median of 33.79. GuruFocus rates XKRX:003550 with a GF Score™ of 87/100 and a GF Value™ of ₩85,021.53 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,672 Hardware companies, LG ranks better than 66.27% 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. LG's Operating Income for the three months ended in Jun. 2026 was ₩533,093 Mil. LG's Interest Expense for the three months ended in Jun. 2026 was ₩-5,339 Mil. LG's interest coverage for the quarter that ended in Jun. 2026 was 99.85. The higher the ratio, the stronger the company's financial strength is.

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

XKRX:003550' s Interest Coverage Range Over the Past 10 Years
Min: 14   Med: 33.79   Max: 106.5
Current: 34.1


XKRX:003550's Interest Coverage is ranked better than
66.27% of 1672 companies
in the Hardware industry
Industry Median: 15.23 vs XKRX:003550: 34.10

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


LG  (XKRX:003550) 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 .


LG Interest Coverage Related Terms


LG Interest Coverage Historical Data

* Premium members only.

The historical data trend for LG'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.

LG Interest Coverage Chart

LG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 106.50 95.18 40.02 35.81 31.76

LG Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 41.52 60.79 0.00 55.28 99.85

XKRX:003550 vs AAPL: Interest Coverage Comparison

For the Consumer Electronics subindustry, LG'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.


LG Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, LG's Interest Coverage distribution charts can be found below:

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


XKRX:003550
87GF Score
LG Corp XKRX:003550
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

LG 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.

LG'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, LG's Interest Expense was ₩-28,744 Mil. Its Operating Income was ₩913,052 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩452,547 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*913052/-28744
=31.76

LG's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, LG's Interest Expense was ₩-5,339 Mil. Its Operating Income was ₩533,093 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩364,609 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*533093/-5339
=99.85

* 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 99.85 mean?
LG (XKRX:003550) has a Interest Coverage of 99.85 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LG and its competitors. This is 196% above median its historical median of 33.79. Over the past decade, LG's Interest Coverage has ranged from 14.00 to 106.50. According to the industry distribution chart, LG ranks #564 out of 1672 companies in the Hardware industry, placing it in the top 33.7%.
Is LG's Interest Coverage too high?
LG's current Interest Coverage of 99.85 is 196% above median its 10-year median of 33.79. Over the past 10 years, this metric has ranged from a low of 14.00 to a high of 106.50. The Hardware industry median Interest Coverage is 15.23. LG's value of 99.85 is 555.6% above this industry median. Based on the distribution chart, LG ranks #564 out of 1672 companies in the Hardware industry, which is above the industry midpoint. Overall, LG has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LG's Interest Coverage compare to AAPL?
According to the Hardware industry distribution chart, LG ranks #564 out of 1672 companies for Interest Coverage. This puts LG in the upper half of its industry. The industry median Interest Coverage is 15.23. LG's value of 99.85 is 555.6% above this benchmark. Historically, LG's own Interest Coverage has ranged from 14.00 to 106.50 over the past decade. While the company's 10-year median is 33.79 vs. the industry median of 15.23, LG 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 Hardware company?
The median Interest Coverage among Hardware companies is 15.23, based on 1,672 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. LG's current Interest Coverage of 99.85 is 555.6% 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 LG and its competitors. For the Hardware industry, the median Interest Coverage is 15.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LG's current Interest Coverage is 99.85, which is 196% above median its own 10-year median of 33.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LG stock overvalued right now?
Based on GuruFocus' analysis, LG (XKRX:003550) is currently considered Significantly Overvalued. The stock's GF Value™ is ₩85,021.53, compared to a current price of ₩118,500.00 — trading 39.4% above its estimated fair value. The current Interest Coverage is 99.85, which is 196% above median its 10-year median of 33.79 and 555.6% above the Hardware industry median of 15.23. LG's overall GF Score™ is 87/100 with 5 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 LG (XKRX:003550), the current Interest Coverage is 99.85 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 LG (XKRX:003550) Overvalued in 2026?

Based on GuruFocus' analysis, LG stock appears to be overvalued. The current stock price of ₩118,500.00 is trading 39.4% above its estimated GF Value™ of ₩85,021.53. GuruFocus considers LG to be Significantly Overvalued.

Key valuation signals for XKRX:003550:

  • Interest Coverage: 99.85 (196% above median its 10-year median of 33.79)
  • GF Value™: ₩85,021.53 vs. price of ₩118,500.00 (39.4% above fair value)
  • GF Score™: 87/100 with 5 warning signs
  • Industry Position: 555.6% above the Hardware median (#564 of 1672)

No single metric tells the full story. See the XKRX:003550 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


LG Business Description

Other Exchanges 003555:Korea
Address 128 Yeoui-daero, LG Twin Tower, Yeongdeungpo-gu, Seoul, KOR, 07336
LG Corp is a South Korea-based holding company that is principally engaged in electronics, chemicals, telecommunications, and services businesses. The company operates business through a number of affiliated companies, including LG Electronics, LG Display, LG Innotek, LG Siltron, and others in the electronics industry; LG Chem, LG Household and Health Care, LG Life Sciences, and others in the chemicals industry; and LG N-Sys, LG CNS, LG Sports, and others in the telecommunication and services industry. The company has business presence in Asia-Pacific, the Americas, and Europe.
87GF Score

Get the complete analysis for XKRX:003550

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

₩118,500.00
Price
₩85,021.53
GF Value