Karo Leather (XPRA:KARIN) Interest Coverage: 1.37 (As of Dec. 2025) — 41% Below Median

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XPRA:KARIN Karo Leather XPRA:KARIN
87 GF Score
Price Kč140.00
GF Value Kč122.20
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Karo Leather Interest Coverage?

Karo Leather XPRA:KARIN 87 Interest Coverage is 1.37 as of Dec. 2025, which is 41% below its 10-year median of 2.31. GuruFocus rates XPRA:KARIN with a GF Score™ of 87/100 and a GF Value™ of Kč122.20 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 735 Manufacturing - Apparel & Accessories companies, Karo Leather ranks worse than 82.99% 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. Karo Leather's Operating Income for the three months ended in Dec. 2025 was Kč3.06 Mil. Karo Leather's Interest Expense for the three months ended in Dec. 2025 was Kč-2.24 Mil. Karo Leather's interest coverage for the quarter that ended in Dec. 2025 was 1.37. The higher the ratio, the stronger the company's financial strength is.

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

XPRA:KARIN' s Interest Coverage Range Over the Past 10 Years
Min: 0.8   Med: 2.31   Max: No Debt
Current: 1.37


XPRA:KARIN's Interest Coverage is ranked worse than
82.99% of 735 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.3 vs XPRA:KARIN: 1.37

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


Karo Leather  (XPRA:KARIN) 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 .


Karo Leather Interest Coverage Related Terms


Karo Leather Interest Coverage Historical Data

* Premium members only.

The historical data trend for Karo Leather'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.

Karo Leather Interest Coverage Chart

Karo Leather Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 1.87 0.80 1.44 2.75 6.25

Karo Leather Quarterly Data
Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Sep25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only N/A N/A 0.82 N/A 1.37

XPRA:KARIN vs AIN: Interest Coverage Comparison

For the Textile Manufacturing subindustry, Karo Leather'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.


Karo Leather Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Karo Leather's Interest Coverage distribution charts can be found below:

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


XPRA:KARIN
87GF Score
Karo Leather XPRA:KARIN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Karo Leather 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.

Karo Leather'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, Karo Leather's Interest Expense was Kč-9.97 Mil. Its Operating Income was Kč62.29 Mil. And its Long-Term Debt & Capital Lease Obligation was Kč94.99 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*62.293/-9.971
=6.25

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

Here, for the three months ended in Dec. 2025, Karo Leather's Interest Expense was Kč-2.24 Mil. Its Operating Income was Kč3.06 Mil. And its Long-Term Debt & Capital Lease Obligation was Kč94.99 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*3.063/-2.238
=1.37

* 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 1.37 mean?
Karo Leather (XPRA:KARIN) has a Interest Coverage of 1.37 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karo Leather and its competitors. This is 41% below median its historical median of 2.31. Over the past decade, Karo Leather's Interest Coverage has ranged from 0.80 to 10,000.00. According to the industry distribution chart, Karo Leather ranks #610 out of 735 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 83%.
Is Karo Leather's Interest Coverage too high?
Karo Leather's current Interest Coverage of 1.37 is 41% below median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 10,000.00. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.30. Karo Leather's value of 1.37 is 74.2% below this industry median. Based on the distribution chart, Karo Leather ranks #610 out of 735 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Karo Leather has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karo Leather's Interest Coverage compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Karo Leather ranks #610 out of 735 companies for Interest Coverage. This places Karo Leather in the lower half of its industry. The industry median Interest Coverage is 5.30. Karo Leather's value of 1.37 is 74.2% below this benchmark. Historically, Karo Leather's own Interest Coverage has ranged from 0.80 to 10,000.00 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 5.30, Karo Leather 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.30, based on 735 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. Karo Leather's current Interest Coverage of 1.37 is 74.2% 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 Karo Leather and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karo Leather's current Interest Coverage is 1.37, which is 41% below median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karo Leather stock overvalued right now?
Based on GuruFocus' analysis, Karo Leather (XPRA:KARIN) is currently considered Modestly Overvalued. The stock's GF Value™ is Kč122.20, compared to a current price of Kč140.00 — trading 14.6% above its estimated fair value. The current Interest Coverage is 1.37, which is 41% below median its 10-year median of 2.31 and 74.2% below the Manufacturing - Apparel & Accessories industry median of 5.30. Karo Leather's overall GF Score™ is 87/100 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 Karo Leather (XPRA:KARIN), the current Interest Coverage is 1.37 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 Karo Leather (XPRA:KARIN) Overvalued in 2026?

Based on GuruFocus' analysis, Karo Leather stock appears to be overvalued. The current stock price of Kč140.00 is trading 14.6% above its estimated GF Value™ of Kč122.20. GuruFocus considers Karo Leather to be Modestly Overvalued.

Key valuation signals for XPRA:KARIN:

  • Interest Coverage: 1.37 (41% below median its 10-year median of 2.31)
  • GF Value™: Kč122.20 vs. price of Kč140.00 (14.6% above fair value)
  • GF Score™: 87/100 with 7 warning signs
  • Industry Position: 74.2% below the Manufacturing - Apparel & Accessories median (#610 of 735)

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


Karo Leather Business Description

Address Rohanske nabrezi 642/35, Prague, CZE, 186 00
Karo Leather is engaged in machine processing and trading of leather for the furniture industry and selling of cowhides. Its products include sells buffalo, cowhide products; and upholstery leather. It markets products in European Union countries, especially Poland.
87GF Score

Get the complete analysis for XPRA:KARIN

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

Kč140.00
Price
Kč122.20
GF Value