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. Rhythm Pharmaceuticals's
Operating Income
for the
three
months ended in Mar. 2026 was $-52.4 Mil. Rhythm Pharmaceuticals's Interest Expense for the
three
months ended in Mar. 2026 was $-4.6 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 Rhythm Pharmaceuticals's Interest Coverage or its related term are showing as below:
RYTM's Interest Coverage is not ranked *
in the Biotechnology industry.
Industry Median: 106.07 * Ranked among companies with meaningful Interest Coverage only.
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 .
Rhythm Pharmaceuticals Interest Coverage Related Terms
Rhythm Pharmaceuticals Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rhythm Pharmaceuticals'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.
RYTM vs MIRM, SYRE, PTGX: Interest Coverage Comparison
For the Biotechnology subindustry, Rhythm Pharmaceuticals'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.
Rhythm Pharmaceuticals Interest Coverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rhythm Pharmaceuticals'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:
Rhythm Pharmaceuticals 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?
Rhythm Pharmaceuticals (RYTM) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rhythm Pharmaceuticals and its competitors. According to the industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 377 companies in the Biotechnology industry.
Is Rhythm Pharmaceuticals' Interest Coverage too high?
Rhythm Pharmaceuticals' current Interest Coverage is 0 (At Loss). Based on the distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 377 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Rhythm Pharmaceuticals has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' Interest Coverage compare to MIRM and SYRE?
According to the Biotechnology industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 377 companies for Interest Coverage. This places Rhythm Pharmaceuticals in the lower half of its industry. The industry median Interest Coverage is 106.07. 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 Biotechnology company?
The median Interest Coverage among Biotechnology companies is 106.07, based on 377 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 Rhythm Pharmaceuticals and its competitors. For the Biotechnology industry, the median Interest Coverage is 106.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Pharmaceuticals'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 Rhythm Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals (RYTM) is currently considered Fairly Valued. The stock's GF Value™ is $110.90, compared to a current price of $110.42 — trading 0.4% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Rhythm Pharmaceuticals' overall GF Score™ is 56/100 with 3 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 Rhythm Pharmaceuticals (RYTM), the current Interest Coverage is 0 (At Loss) 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 Rhythm Pharmaceuticals (RYTM) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be undervalued.
The current stock price of $110.42 is trading 0.4% below its estimated GF Value™ of $110.90.
GuruFocus considers Rhythm Pharmaceuticals to be Fairly Valued.
Key valuation signals for RYTM:
Interest Coverage: 0 (At Loss)
GF Value™: $110.90 vs. price of $110.42 (0.4% below fair value)
No single metric tells the full story. See the RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
56GF Score
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