Palantir Technologies Inc. Class A Common Stock (PLTR)

Current ratio

		Dec 31, 2024	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	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	5,934,290	5,351,960	4,773,510	4,436,060	4,138,620	3,809,400	3,576,910	3,256,150	3,041,580	2,946,610	2,902,440	2,927,370	2,863,250	2,811,490	2,662,550	2,589,700	2,257,430	2,394,420	1,680,200	1,079,150
Total current liabilities	US$ in thousands	996,018	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	604,116	—
Current ratio		5.96	5.67	5.92	5.91	5.55	5.53	5.22	5.41	5.17	4.28	4.36	4.38	4.34	4.13	3.90	3.88	3.74	2.54	2.78	—

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,934,290K ÷ $996,018K
= 5.96

The current ratio of Palantir Technologies Inc. Class A Common Stock has shown a consistent upward trend over the analyzed period from June 30, 2020, to December 31, 2024. The current ratio increased from 2.78 in June 2020 to 5.96 in December 2024. This indicates that the company's current assets have been sufficient to cover its current liabilities over this period.

A higher current ratio generally suggests that a company is more capable of meeting its short-term obligations. Palantir's current ratio continuously increased, reaching a peak of 5.96 in December 2024, indicating a strengthening liquidity position. It implies that the company has ample current assets to cover its current liabilities, enhancing its ability to repay debts and fund operations in the short term.

The increasing trend in the current ratio reflects positively on Palantir's financial health and liquidity management. It suggests that the company has been effectively managing its working capital and maintaining a healthy balance between its short-term assets and liabilities. Investors and stakeholders may view this trend as a sign of stability and solvency within the company.

Overall, the progressive increase in Palantir's current ratio from 2.78 in June 2020 to 5.96 in December 2024 indicates a strengthening liquidity position and efficient management of short-term obligations, which can enhance investor confidence and support the company's operational sustainability.