Palantir Technologies Inc. Class A Common Stock (PLTR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,098,520	831,047	2,598,540	2,290,670	2,011,320
Short-term investments	US$ in thousands	3,131,460	2,843,130	35,135	234,153	0
Total current liabilities	US$ in thousands	996,018	746,018	587,941	660,061	603,823
Cash ratio		5.25	4.93	4.48	3.83	3.33

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,098,520K + $3,131,460K) ÷ $996,018K
= 5.25

The cash ratio of Palantir Technologies Inc. Class A Common Stock has shown a consistent upward trend over the past five years. Starting at 3.33 on December 31, 2020, the ratio has shown steady improvement, reaching 5.25 on December 31, 2024. This indicates that the company has been able to strengthen its liquidity position relative to its current liabilities over the years. A higher cash ratio signifies that the company has more cash and cash equivalents readily available to cover its short-term obligations. This positive trend in the cash ratio reflects Palantir Technologies' ability to effectively manage its cash resources and maintain a healthy liquidity position, which can be beneficial for its financial stability and operational flexibility.