Roku (XTER:R35) Interest Coverage: 82.93 (As of Mar. 2026) — 98% Below Median


XTER:R35 Roku Inc XTER:R35
75 GF Score
Price €119.44
GF Value €88.82
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Roku Interest Coverage?

Roku XTER:R35 +0.61% 75 Interest Coverage is 82.93 as of Mar. 2026, which is 98% below its 10-year median of 5,039.45. GuruFocus rates XTER:R35 with a GF Score™ of 75/100 and a GF Value™ of €88.82 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 605 Media - Diversified companies, Roku ranks better than 69.75% 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. Roku's Operating Income for the three months ended in Mar. 2026 was €45 Mil. Roku's Interest Expense for the three months ended in Mar. 2026 was €-1 Mil. Roku's interest coverage for the quarter that ended in Mar. 2026 was 82.93. The higher the ratio, the stronger the company's financial strength is.

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

XTER:R35' s Interest Coverage Range Over the Past 10 Years
Min: 49.54   Med: 5039.45   Max: No Debt
Current: 49.54


XTER:R35's Interest Coverage is ranked better than
69.75% of 605 companies
in the Media - Diversified industry
Industry Median: 11.65 vs XTER:R35: 49.54

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


Roku  (XTER:R35) 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 .


Roku Interest Coverage Related Terms


Roku Interest Coverage Historical Data

* Premium members only.

The historical data trend for Roku'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.

Roku Interest Coverage Chart

Roku 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 78.90 0.00 0.00 0.00 0.00

Roku Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 0.00 0.00 20.79 118.12 82.93

XTER:R35 vs FOXA, FWONA, TKO: Interest Coverage Comparison

For the Entertainment subindustry, Roku'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.


Roku Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Roku's Interest Coverage distribution charts can be found below:

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


XTER:R35
75GF Score
Roku Inc XTER:R35
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Roku 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.

Roku'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, Roku's Interest Expense was €-2 Mil. Its Operating Income was €-5 Mil. And its Long-Term Debt & Capital Lease Obligation was €372 Mil.

Roku did not have earnings to cover the interest expense.

Roku's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Roku's Interest Expense was €-1 Mil. Its Operating Income was €45 Mil. And its Long-Term Debt & Capital Lease Obligation was €357 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*44.783/-0.54
=82.93

* 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 82.93 mean?
Roku (XTER:R35) has a Interest Coverage of 82.93 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Roku and its competitors. This is 98% below median its historical median of 5,039.45. Over the past decade, Roku's Interest Coverage has ranged from 49.54 to 10,000.00. According to the industry distribution chart, Roku ranks #183 out of 605 companies in the Media - Diversified industry, placing it in the top 30.2%.
Is Roku's Interest Coverage too high?
Roku's current Interest Coverage of 82.93 is 98% below median its 10-year median of 5,039.45. Over the past 10 years, this metric has ranged from a low of 49.54 to a high of 10,000.00. The Media - Diversified industry median Interest Coverage is 11.65. Roku's value of 82.93 is 611.8% above this industry median. Based on the distribution chart, Roku ranks #183 out of 605 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Roku has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roku's Interest Coverage compare to FOXA and FWONA?
According to the Media - Diversified industry distribution chart, Roku ranks #183 out of 605 companies for Interest Coverage. This puts Roku in the upper half of its industry. The industry median Interest Coverage is 11.65. Roku's value of 82.93 is 611.8% above this benchmark. Historically, Roku's own Interest Coverage has ranged from 49.54 to 10,000.00 over the past decade. While the company's 10-year median is 5,039.45 vs. the industry median of 11.65, Roku 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.65, based on 605 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. Roku's current Interest Coverage of 82.93 is 611.8% 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 Roku and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roku's current Interest Coverage is 82.93, which is 98% below median its own 10-year median of 5,039.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roku stock overvalued right now?
Based on GuruFocus' analysis, Roku (XTER:R35) is currently considered Significantly Overvalued. The stock's GF Value™ is €88.82, compared to a current price of €119.44 — trading 34.5% above its estimated fair value. The current Interest Coverage is 82.93, which is 98% below median its 10-year median of 5,039.45 and 611.8% above the Media - Diversified industry median of 11.65. Roku's overall GF Score™ is 75/100 with 6 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 Roku (XTER:R35), the current Interest Coverage is 82.93 as of Mar. 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 Roku (XTER:R35) Overvalued in 2026?

Based on GuruFocus' analysis, Roku stock appears to be overvalued. The current stock price of €119.44 is trading 34.5% above its estimated GF Value™ of €88.82. GuruFocus considers Roku to be Significantly Overvalued.

Key valuation signals for XTER:R35:

  • Interest Coverage: 82.93 (98% below median its 10-year median of 5,039.45)
  • GF Value™: €88.82 vs. price of €119.44 (34.5% above fair value)
  • GF Score™: 75/100 with 6 warning signs
  • Industry Position: 611.8% above the Media - Diversified median (#183 of 605)

No single metric tells the full story. See the XTER:R35 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Roku Business Description

Address 1173 Coleman Avenue, San Jose, CA, USA, 95110
Roku enables consumers to stream television programming. Roku facilitated 145 billion streaming hours in 2025 and reached more than half of US broadband households. It is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku's OS is built into streaming devices and televisions that Roku sells, as well as on connected televisions from other manufacturers that license Roku's name and software. Roku also operates The Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from device sales, licensing, and advertising, and it also receives fees from subscription streaming platforms that sell subscriptions through Roku.
75GF Score

Get the complete analysis for XTER:R35

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

€119.44
Price
€88.82
GF Value