Palantir Technologies Inc. Class A Common Stock (PLTR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	831,047	2,598,540	2,290,670	2,011,320
Short-term investments	US$ in thousands	2,843,130	35,135	234,153	—
Total current liabilities	US$ in thousands	746,018	587,941	660,061	603,823
Cash ratio		4.93	4.48	3.83	3.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($831,047K + $2,843,130K) ÷ $746,018K
= 4.93

The cash ratio of Palantir Technologies Inc. Class A Common Stock has been generally increasing over the past four years, indicating an improving ability to cover its short-term obligations solely with its cash and cash equivalents. As of December 31, 2023, the company's cash ratio stood at 4.93, a notable increase from 4.48 in 2022, 3.83 in 2021, and 3.33 in 2020. This upward trend suggests that Palantir Technologies Inc. is becoming more liquid and financially stable, which could enhance its ability to meet its financial obligations in the near term without relying on external financing or asset sales. A higher cash ratio is generally viewed positively by investors and creditors as it reflects a stronger financial position and liquidity management by the company.