Palantir Technologies Inc. Class A Common Stock (PLTR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — |
| Quick ratio | 5.25 | 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 | 2.48 | — |
| Cash ratio | 5.25 | 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 | 2.48 | — |
The liquidity ratios of Palantir Technologies Inc. Class A Common Stock have shown consistent improvement over the analyzed periods. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has steadily increased from 2.78 as of June 30, 2020, to 5.96 as of December 31, 2024. This indicates that the company has a strong ability to meet its short-term obligations.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also demonstrates an improving trend, rising from 2.48 on June 30, 2020, to 5.25 on December 31, 2024. This suggests that Palantir has a high level of liquid assets to cover immediate liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has exhibited a similar positive trend, increasing from 2.48 on June 30, 2020, to 5.25 on December 31, 2024. This indicates that the company has a substantial amount of cash on hand to cover its short-term obligations.
Overall, the improving liquidity ratios of Palantir Technologies Inc. Class A Common Stock suggest a strengthening financial position with a growing ability to meet its short-term financial commitments.
See also:
Palantir Technologies Inc. Class A Common Stock Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.34 | 14.51 | 0.00 | 0.00 | 0.00 | 39.39 | 46.78 | 34.85 | 37.38 | 38.60 | 44.66 | 49.44 | 0.00 |
The cash conversion cycle of Palantir Technologies Inc. Class A Common Stock has fluctuated over the reviewed periods. In June 2020, the company had a cash conversion cycle of 49.44 days, indicating that it took, on average, around 49.44 days for the company to convert its investments in inventory and other resources into cash flows from sales.
Subsequently, the cash conversion cycle decreased to 34.85 days by June 2021, reflecting an improvement in the company's efficiency in managing its working capital. However, by September 2021, the cycle increased to 46.78 days before declining to 39.39 days by the end of December 2021.
The trend continued with fluctuations in the cash conversion cycle throughout the subsequent periods, ranging from 10.34 days in March 2023 to 14.51 days in December 2022. Notably, in some quarters, the cash conversion cycle was recorded as 0.00 days, indicating a significant improvement in cash flow efficiency during these periods.
Overall, the analysis of Palantir Technologies Inc. Class A Common Stock's cash conversion cycle highlights the company's efforts to optimize its working capital management and improve its cash flow efficiency over time. Nevertheless, continuous monitoring and adjustment may be required to sustain these improvements and ensure the company's liquidity and financial health in the long term.