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. Olympic Steel's
Operating Income
for the
three
months ended in Sep. 2025 was $7 Mil. Olympic Steel's Interest Expense for the
three
months ended in Sep. 2025 was $-4 Mil.
Olympic Steel's interest coverage for the quarter that ended in Sep. 2025 was 1.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Olympic Steel's Interest Coverage or its related term are showing as below:
ZEUS'
s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 3.19 Max: 22.6
Current: 2.15
ZEUS's Interest Coverage is not ranked
in the Steel industry.
Industry Median: 4.445
vs ZEUS: 2.15
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 .
Olympic Steel Interest Coverage Related Terms
Olympic Steel Interest Coverage Historical Data
* Premium members only.
The historical data trend for Olympic Steel'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.
ZEUS vs MSB, NWPX, MTUS: Interest Coverage Comparison
For the Steel subindustry, Olympic Steel'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.
Olympic Steel Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Olympic Steel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Olympic Steel'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:
* 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.
Olympic Steel (ZEUS) has a Interest Coverage of 1.75 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Olympic Steel and its competitors. This is 45% below median its historical median of 3.19. Over the past decade, Olympic Steel's Interest Coverage has ranged from 0.08 to 22.60.
Is Olympic Steel's Interest Coverage too high?
Olympic Steel's current Interest Coverage of 1.75 is 45% below median its 10-year median of 3.19. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 22.60. The Steel industry median Interest Coverage is 4.45. Olympic Steel's value of 1.75 is 60.6% below this industry median. Overall, Olympic Steel has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Olympic Steel's Interest Coverage compare to MSB and NWPX?
Olympic Steel's Interest Coverage of 1.75 can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. Olympic Steel's value of 1.75 is 60.6% below this benchmark. Historically, Olympic Steel's own Interest Coverage has ranged from 0.08 to 22.60 over the past decade. While the company's 10-year median is 3.19 vs. the industry median of 4.45, Olympic Steel 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 458 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. Olympic Steel's current Interest Coverage of 1.75 is 60.6% 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 Olympic Steel and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Olympic Steel's current Interest Coverage is 1.75, which is 45% below median its own 10-year median of 3.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Olympic Steel stock overvalued right now?
Olympic Steel (ZEUS) has a current Interest Coverage of 1.75. The stock's GF Value™ is $36.41, compared to a current price of $47.86 — trading 31.4% above its estimated fair value. The current Interest Coverage is 1.75, which is 45% below median its 10-year median of 3.19 and 60.6% below the Steel industry median of 4.45. Olympic Steel's overall GF Score™ is 58/100 with 8 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 Olympic Steel (ZEUS), the current Interest Coverage is 1.75 as of Sep. 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 Olympic Steel (ZEUS) Overvalued in 2026?
Based on GuruFocus' analysis, Olympic Steel stock appears to be overvalued.
The current stock price of $47.86 is trading 31.4% above its estimated GF Value™ of $36.41.
Key valuation signals for ZEUS:
Interest Coverage: 1.75 (45% below median its 10-year median of 3.19)
GF Value™: $36.41 vs. price of $47.86 (31.4% above fair value)
No single metric tells the full story. See the ZEUS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Olympic Steel Inc provides metals processing and distribution services in the United States. The company operates in three reportable segments; specialty metals flat products, carbon flat products, and tubular and pipe products. It specializes in the processing and distribution of large volumes of carbon, aluminum, and stainless steel flat-rolled sheet, coils, plates, bars, and fabricated parts. The group serves various industries such as industrial machinery and equipment manufacturers, automobile manufacturers and suppliers, and transportation equipment manufacturers. The company generates majority of the revenue from carbon flat products.
58GF Score
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