Palantir Technologies Inc. Class A Common Stock (PLTR)

Cash ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	768,710	512,659	520,388	831,047	1,040,310	1,055,920	1,264,740	2,598,540	2,411,290	2,358,390	2,269,410	2,290,670	2,335,070	2,341,160	2,339,440	2,011,320	1,800,190
Short-term investments	US$ in thousands	3,795,950	3,485,800	3,347,510	2,843,130	2,243,260	2,047,330	1,639,800	35,135	57,342	99,210	252,563	234,153	148,077	—	—	—	—
Total current liabilities	US$ in thousands	943,456	806,919	750,553	746,018	688,925	685,384	601,413	587,941	688,350	665,742	669,104	660,061	681,509	682,586	667,626	603,823	942,187
Cash ratio		4.84	4.96	5.15	4.93	4.77	4.53	4.83	4.48	3.59	3.69	3.77	3.83	3.64	3.43	3.50	3.33	1.91

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($768,710K + $3,795,950K) ÷ $943,456K
= 4.84

The cash ratio of Palantir Technologies Inc. Class A Common Stock has been relatively stable over the past quarters, ranging between 3.43 and 5.15. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

Based on the data provided, Palantir's cash ratio has generally been above 3, indicating that the company has a strong ability to cover its short-term obligations using its cash reserves. A higher cash ratio suggests a better liquidity position and indicates that a company is more capable of meeting its short-term financial obligations without relying on external sources of funding.

The consistent cash ratio above 3 demonstrates that Palantir has maintained a healthy level of liquidity over the periods covered. This indicates financial stability and the ability to weather potential short-term financial challenges. However, investors and analysts should continue to monitor the trend to ensure the company maintains adequate liquidity to support its operations and growth strategies.