Galderma Group AG (XSWX:GALD) Interest Coverage: 6.18 (As of Dec. 2025) — 472% Above Median


XSWX:GALD Galderma Group AG XSWX:GALD
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What is Galderma Group AG Interest Coverage?

Galderma Group AG XSWX:GALD -2.75% 15 Interest Coverage is 6.18 as of Dec. 2025, which is 472% above its 10-year median of 1.08. GuruFocus rates XSWX:GALD with a GF Score™ of 15/100. The stock has 4 warning signs investors should review. Among 685 Drug Manufacturers companies, Galderma Group AG ranks worse than 70.66% 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. Galderma Group AG's Operating Income for the six months ended in Dec. 2025 was CHF389 Mil. Galderma Group AG's Interest Expense for the six months ended in Dec. 2025 was CHF-63 Mil. Galderma Group AG's interest coverage for the quarter that ended in Dec. 2025 was 6.18. The higher the ratio, the stronger the company's financial strength is.

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

XSWX:GALD' s Interest Coverage Range Over the Past 10 Years
Min: 1.01   Med: 1.08   Max: 5.01
Current: 5


XSWX:GALD's Interest Coverage is ranked worse than
70.66% of 685 companies
in the Drug Manufacturers industry
Industry Median: 12.78 vs XSWX:GALD: 5.00

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


Galderma Group AG  (XSWX:GALD) 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 .


Galderma Group AG Interest Coverage Related Terms


Galderma Group AG Interest Coverage Historical Data

* Premium members only.

The historical data trend for Galderma Group AG'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.

Galderma Group AG Interest Coverage Chart

Galderma Group AG Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
1.01 1.02 1.08 1.90 5.01

Galderma Group AG Semi-Annual Data
Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial 1.18 1.34 3.02 4.04 6.18

XSWX:GALD vs ZTS, UTHR, VTRS: Interest Coverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Galderma Group AG'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.


Galderma Group AG Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Galderma Group AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Galderma Group AG's Interest Coverage falls into.


XSWX:GALD
15GF Score
Galderma Group AG XSWX:GALD
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Galderma Group AG 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.

Galderma Group AG'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, Galderma Group AG's Interest Expense was CHF-139 Mil. Its Operating Income was CHF698 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF2,143 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*698.084/-139.458
=5.01

Galderma Group AG's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Galderma Group AG's Interest Expense was CHF-63 Mil. Its Operating Income was CHF389 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF2,143 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*388.887/-62.955
=6.18

* 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 6.18 mean?
Galderma Group AG (XSWX:GALD) has a Interest Coverage of 6.18 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Galderma Group AG and its competitors. This is 472% above median its historical median of 1.08. Over the past decade, Galderma Group AG's Interest Coverage has ranged from 1.01 to 5.01. According to the industry distribution chart, Galderma Group AG ranks #484 out of 685 companies in the Drug Manufacturers industry, placing it in the top 70.7%.
Is Galderma Group AG's Interest Coverage too high?
Galderma Group AG's current Interest Coverage of 6.18 is 472% above median its 10-year median of 1.08. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 5.01. The Drug Manufacturers industry median Interest Coverage is 12.78. Galderma Group AG's value of 6.18 is 51.6% below this industry median. Based on the distribution chart, Galderma Group AG ranks #484 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Galderma Group AG has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Galderma Group AG's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Galderma Group AG ranks #484 out of 685 companies for Interest Coverage. This places Galderma Group AG in the lower half of its industry. The industry median Interest Coverage is 12.78. Galderma Group AG's value of 6.18 is 51.6% below this benchmark. Historically, Galderma Group AG's own Interest Coverage has ranged from 1.01 to 5.01 over the past decade. While the company's 10-year median is 1.08 vs. the industry median of 12.78, Galderma Group AG 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Galderma Group AG's current Interest Coverage of 6.18 is 51.6% 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 Galderma Group AG and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Galderma Group AG's current Interest Coverage is 6.18, which is 472% above median its own 10-year median of 1.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Galderma Group AG stock overvalued right now?
Galderma Group AG (XSWX:GALD) has a current Interest Coverage of 6.18. The current Interest Coverage is 6.18, which is 472% above median its 10-year median of 1.08 and 51.6% below the Drug Manufacturers industry median of 12.78. Galderma Group AG's overall GF Score™ is 15/100 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 Galderma Group AG (XSWX:GALD), the current Interest Coverage is 6.18 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.

Galderma Group AG Business Description

Address Zahlerweg 10, Zug, CHE, 6300
Galderma was formed in 1981 as a joint venture between Nestle and L'Oreal. It subsequently became a subsidiary of Nestle, called Nestle Skin Health, before being carved out and launched as a stand-alone company in 2019, acquired by a consortium led by Sweden-based EQT fund. The company went public in March 2024 and is listed on the SIX Swiss exchange. Galderma's science-based portfolio spans multiple dermatology categories, including injectable aesthetics, dermatological skincare, and therapeutic dermatology. It derives around 40% of net sales from the US and employs more than 7,500 people.
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