Palantir Technologies Inc. Class A Common Stock (PLTR)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 |
| Quick ratio | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 |
| Cash ratio | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 |
Palantir Technologies Inc. Class A Common Stock has shown a consistent improvement in its liquidity ratios over the years, indicating its ability to meet short-term obligations effectively.
The current ratio has steadily increased from 3.74 in December 2020 to 5.96 in December 2024, reflecting a strong liquidity position. This ratio suggests that the company has more than enough current assets to cover its current liabilities, providing a cushion for operational needs and unexpected expenses.
Similarly, the quick ratio, also known as the acid-test ratio, has depicted a positive trend, climbing from 3.33 in December 2020 to 5.25 in December 2024. This ratio excludes inventory from current assets to provide a more stringent measure of liquidity, showing Palantir's ability to swiftly meet its short-term obligations without relying on inventory conversion.
Furthermore, the cash ratio, which measures the company's ability to settle current liabilities with its most liquid asset, cash and cash equivalents, has followed a similar upward trajectory from 3.33 in December 2020 to 5.25 in December 2024. This indicates that Palantir has ample cash reserves to cover its short-term obligations, enhancing its financial flexibility.
Overall, Palantir Technologies Inc. Class A Common Stock has demonstrated robust liquidity positions based on its current, quick, and cash ratios, positioning the company well to navigate uncertain economic conditions and seize potential growth opportunities.
See also:
Palantir Technologies Inc. Class A Common Stock Liquidity Ratios
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 14.51 | 39.39 | 38.60 |
The cash conversion cycle of Palantir Technologies Inc. Class A Common Stock has shown varying trends over the years.
1. In December 31, 2020, the cash conversion cycle was 38.60 days, indicating that it took the company approximately 38.60 days to convert its investments in inventory and accounts receivable into cash.
2. By December 31, 2021, the cash conversion cycle increased slightly to 39.39 days, suggesting a potential slowdown in the company's ability to generate cash from its operating activities.
3. Surprisingly, by December 31, 2022, there was a significant improvement in the cash conversion cycle, decreasing to 14.51 days. This could indicate more efficient management of inventory and receivables, resulting in quicker cash generation.
4. The most notable change occurred by December 31, 2023, where the cash conversion cycle dropped to 0.00 days. This implies that the company was able to convert its investments into cash almost instantly, a highly efficient and positive sign for its cash flow management.
5. Similarly, by December 31, 2024, the cash conversion cycle remained at 0.00 days, indicating sustained efficiency in the company's cash conversion process.
Overall, the varying trends in Palantir Technologies Inc.'s cash conversion cycle demonstrate fluctuations in the company's ability to efficiently manage its working capital over the years, with significant improvements observed in recent periods that reflect enhanced operational efficiency and potentially better liquidity management strategies.