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. Applied Digital's
Operating Income
for the
three
months ended in Feb. 2026 was CHF-25.9 Mil. Applied Digital's Interest Expense for the
three
months ended in Feb. 2026 was CHF-3.5 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 Applied Digital's Interest Coverage or its related term are showing as below:
XSWX:APLD's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.75 * Ranked among companies with meaningful Interest Coverage only.
Applied Digital (XSWX:APLD) 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 .
Applied Digital Interest Coverage Related Terms
Applied Digital Interest Coverage Historical Data
* Premium members only.
The historical data trend for Applied Digital'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.
For the Information Technology Services subindustry, Applied Digital'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.
Applied Digital Interest Coverage vs Software Industry
For the Software industry and Technology sector, Applied Digital's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Applied Digital's Interest Coverage falls into.
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:
Applied Digital 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?
Applied Digital (XSWX:APLD) has a Interest Coverage of 0 (At Loss) as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #999999 out of 1704 companies in the Software industry.
Is Applied Digital's Interest Coverage too high?
Applied Digital's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Applied Digital ranks #999999 out of 1704 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Interest Coverage compare to ?
According to the Software industry distribution chart, Applied Digital ranks #999999 out of 1704 companies for Interest Coverage. This places Applied Digital in the lower half of its industry. The industry median Interest Coverage is 24.75. 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 Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 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 Applied Digital and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital'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 Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Interest Coverage of 0 (At Loss). The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Applied Digital's overall GF Score™ is 38/100 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 Applied Digital (XSWX:APLD), the current Interest Coverage is 0 (At Loss) as of Feb. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Interest Coverage: 0 (At Loss)
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
Get the complete analysis for XSWX:APLD
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
XSWX:APLD has been successfully added to your 
