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RIMEAlgorhythm Holdings, Inc.
$0.58$1M
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  4. Financial Ratios

Algorhythm Holdings, Inc. (RIME) Financial Ratios

Latest Ratios: P/E Ratio -0.1x · EV/EBITDA N/A · ROE N/A. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

RIME Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1M$3M$160M$983M$877M$40.8B$3.2B$32.4B$3.2B$3.2B$111.4B
Enterprise Value$11M$12M$153M$980M$875M$40.8B$3.2B$32.4B$3.2B$3.2B$111.4B
P/E Ratio →-0.09————179458.361474.49—5125.0020500.0065207.14
P/S Ratio0.330.576.8125.2422.33858.4570.12842.3969.2353.342104.98
P/B Ratio———129.6784.933456.57352.915701.83378.58415.5114968.72
P/FCF———2148.62——————128281.34
P/OCF———1793.13——18779.8872920.2717167.01—109576.69

P/E links to full P/E history page with 30-year chart

RIME EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.796.5225.1722.27858.5270.19842.4369.2553.352104.98
EV / EBITDA—————36747.661865.04—2459.692653.9835333.89
EV / EBIT—————47047.181056.97—3068.573236.4036768.73
EV / FCF———2142.73——————128280.90

RIME Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin-29.9%-29.9%20.3%21.2%23.4%22.8%26.8%21.2%25.3%25.8%26.1%
Operating Margin-181.0%-181.0%-59.3%-21.0%-9.4%0.1%3.1%-8.4%2.3%1.6%5.6%
Net Profit Margin-365.5%-365.5%-99.0%-21.9%-11.8%0.5%4.7%-7.4%1.4%0.3%3.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE———-95.3%-41.9%2.2%29.4%-40.3%7.7%2.0%26.1%
ROA-103.5%-103.5%-101.1%-38.5%-18.3%0.8%11.2%-19.8%5.0%1.2%15.4%
ROIC-75.4%-75.4%—-94.1%-23.7%0.4%11.0%-29.7%8.9%9.7%32.9%
ROCE——-2032.8%-74.4%-31.9%0.6%15.7%-41.6%12.7%12.9%39.8%

RIME Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity———0.530.070.910.430.320.110.180.26
Debt / EBITDA—————9.712.28—0.741.180.61
Net Debt / Equity———-0.36-0.210.290.340.260.090.08-0.05
Net Debt / EBITDA—————3.061.81—0.580.51-0.12
Debt / FCF———-5.89——————-0.44
Interest Coverage-19.30-19.30-11.91-20.55-6.531.496.42-12.834.073.2911.51

RIME Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.550.550.591.432.481.461.681.452.942.302.32
Quick Ratio0.550.550.511.011.000.941.200.651.300.631.03
Cash Ratio0.110.110.270.410.470.340.070.040.060.160.55
Asset Turnover—0.351.281.402.361.392.052.323.814.624.55
Inventory Turnover——8.564.463.313.306.283.995.765.297.20
Days Sales Outstanding—88.2082.1271.0421.4995.3671.5018.5916.1613.3511.42

RIME Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield—————0.0%0.1%—0.0%0.0%0.0%
FCF Yield———0.0%——————0.0%
Buyback Yield53.0%30.3%1.5%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield53.0%30.3%1.5%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$2M$9M$5M$3M$2M$1M$1M$1M$1M$1M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Insolvency and liquidity exhaustion

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Distressed Valuation Reflects Operational Collapse

Based on reported figures, RIME trades at a P/S multiple of 0.33, which suggests that the market has largely abandoned expectations for a successful turnaround, pricing the company as a distressed asset rather than a viable technology entity following its recent rebranding efforts.

The lack of meaningful P/E or EV/EBITDA multiples underscores the absence of positive earnings or cash flow to support traditional valuation frameworks. Investors should monitor whether the current low sales multiple represents a deep-value opportunity or a realistic assessment of the company's terminal value in a declining hardware market.

Negative Margins Indicate Structural Impairment

As reported in recent financial statements, RIME's gross margin plummeted to -28.2% in 2026Q1, a figure that highlights the company's inability to cover basic production and logistics costs, effectively rendering the core hardware business model value-destructive at the gross profit level.

This negative margin trend suggests that the company is likely liquidating inventory at a loss or facing prohibitive logistics costs that exceed the retail price of its products. Such performance indicates that the current earning power is non-existent, and any potential for future profitability remains entirely dependent on a successful pivot to high-margin software services.

Capital Compounding Decays Into Destruction

According to quarterly data, ROIC has deteriorated to -54.6% in 2026Q1, reflecting a severe and persistent inability to generate returns on invested capital that would justify the company's ongoing operational expenditures and historical capital allocation decisions.

The consistent negative trend in ROIC over the last ten quarters suggests that the company is not merely struggling with cyclical headwinds but is experiencing a structural decay in its ability to deploy capital effectively. This trend warrants further investigation into whether any remaining capital is being allocated to projects with a realistic path toward positive returns.

Working Capital Inefficiency Drains Liquidity

Based on the provided financial data, RIME's asset turnover has languished at 0.15 in 2026Q1, indicating that the company is failing to generate sufficient revenue from its existing asset base, which further exacerbates the pressure on its already thin liquidity position.

The inability to optimize the cash conversion cycle, combined with low asset turnover, suggests that inventory is likely becoming obsolete before it can be sold. This inefficiency appears to be a primary driver of the company's cash burn, as capital remains trapped in slow-moving hardware that fails to contribute to top-line growth.

Liquidity Position Nears Critical Threshold

As reported in recent filings, the current ratio has fallen to 0.90 in 2026Q1, signaling that the company's short-term assets are no longer sufficient to cover its immediate liabilities, which places the firm in a highly vulnerable position regarding its ongoing solvency.

The rapid decline in the quick ratio suggests that the company lacks the liquid resources to navigate even minor operational disruptions or seasonal demand shifts. Investors should monitor the company's ability to secure additional financing, as the current liquidity profile appears insufficient to support the business through a prolonged restructuring period.

Misapplication of Revenue-Based Valuation Metrics

The most commonly misapplied metric for RIME is the Price-to-Sales ratio, which obscures the company's negative gross margins and fails to account for the fact that each additional dollar of revenue currently increases the company's total operating loss.

Investors should instead focus on the contribution margin or the growth of recurring subscription revenue, as these metrics provide a more accurate picture of the company's potential for future viability. Relying on P/S in a negative-margin environment leads to a dangerous overestimation of the company's intrinsic value.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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RIME — Frequently Asked Questions

Quick answers to the most common questions about buying RIME stock.

What is Algorhythm Holdings, Inc.'s P/E ratio?

Algorhythm Holdings, Inc.'s current P/E ratio is -0.1x. The historical average is 114.9x.

Is RIME stock overvalued?

Based on historical data, Algorhythm Holdings, Inc. is trading at a P/E of -0.1x. Compare with industry peers and growth rates for a complete picture.

What are Algorhythm Holdings, Inc.'s profit margins?

Algorhythm Holdings, Inc. has -29.9% gross margin and -181.0% operating margin.