Palantir Technologies Inc. Class A Common Stock (PLTR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 |
| Quick ratio | 5.55 | 5.77 | 5.80 | 5.41 | 5.39 | 5.08 | 5.25 | 4.92 | 4.09 | 4.09 | 4.15 | 4.11 | 3.90 | 3.79 |
| 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 |
Palantir Technologies Inc. Class A Common Stock has exhibited strong liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has consistently been above 4, indicating a healthy liquidity position. From September 2021 to September 2024, the current ratio has ranged between 2.54 and 5.92, with an average of approximately 4.85.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also reflects a strong liquidity position for Palantir. The company consistently maintained a quick ratio above 3, with values ranging between 3.59 and 5.80 during the same period, with an average of around 4.70.
Lastly, the cash ratio, which provides insight into the company's ability to cover its current liabilities with its cash and cash equivalents, has remained robust. Palantir's cash ratio ranged between 1.91 and 5.15 from September 2021 to September 2024, with an average of approximately 4.05.
Overall, Palantir Technologies Inc. appears to have a healthy liquidity position based on its current, quick, and cash ratios over the analyzed period.
See also:
Palantir Technologies Inc. Class A Common Stock Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 72.43 | 43.80 | 46.57 | 49.58 | 65.80 | 63.12 | 53.13 | 23.98 | 13.03 | -0.26 | 29.00 | 4.03 | 71.27 | 72.31 |
The cash conversion cycle for Palantir Technologies Inc. Class A Common Stock reflects the time it takes for the company to convert its investments in inventory and accounts receivable into cash inflows from sales.
Analyzing the data from the table, we can observe fluctuations in the cash conversion cycle over the past few quarters. In the most recent quarter of Sep 30, 2024, the cash conversion cycle increased to 72.43 days, which indicates a longer period for the company to convert its resources into cash compared to the previous quarter. This may suggest potential challenges in managing inventory and collecting receivables efficiently.
Looking back at historical trends, the company managed to achieve a negative cash conversion cycle in the quarter of Jun 30, 2022, which indicates that Palantir Technologies was able to turn its investments into cash very quickly during that period. However, in subsequent quarters, the cash conversion cycle fluctuated, showing periods of both improvement and inefficiency in working capital management.
Overall, monitoring the cash conversion cycle is crucial for assessing the effectiveness of Palantir Technologies Inc.'s operations and liquidity management. A longer cash conversion cycle may indicate inefficiencies in working capital management, whereas a shorter cycle suggests better control over inventory and receivables, leading to improved cash flow and financial performance.