Palantir Technologies Inc. Class A Common Stock (PLTR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.07 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.12 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.13 |
| Financial leverage ratio | 1.30 | 1.35 | 1.42 | 1.77 |
Palantir Technologies Inc.'s solvency ratios indicate a consistently low level of leverage and debt relative to its assets, capital, and equity over the past four years. The debt-to-assets ratio has remained at 0% across all years, suggesting the company has not relied on debt to finance its operations or investments and has a strong asset base to support its activities.
Similarly, the debt-to-capital and debt-to-equity ratios have also maintained at 0% consistently. This implies that the company's capital structure is primarily equity-funded, and it has minimal financial risk associated with debt obligations.
The financial leverage ratio has shown a decreasing trend over the four-year period, from 1.77 in 2020 to 1.30 in 2023. This indicates that the company has been reducing its reliance on debt financing in favor of equity, which may enhance its financial stability and ability to weather economic downturns.
Overall, Palantir Technologies Inc.'s solvency ratios suggest a conservative approach to financial leverage and a strong financial position with minimal debt burden, which bodes well for its long-term sustainability and resilience in the market.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Interest coverage | 67.15 | -88.61 | -133.20 | -82.39 |
Palantir Technologies Inc.'s interest coverage ratio has exhibited significant fluctuations over the past four years. As of December 31, 2023, the interest coverage ratio stands at 67.15, indicating that the company's operating income is sufficient to cover its interest expense by a substantial margin.
In the preceding year, as of December 31, 2022, the interest coverage ratio was negative at -88.61. This suggests that the company's operating income was insufficient to cover its interest payments during that period, which may raise concerns about its financial stability and ability to meet debt obligations.
Similarly, in the years 2021 and 2020, the interest coverage ratios were also negative at -133.20 and -82.39, respectively. These figures further underscore the challenges Palantir Technologies Inc. faced in generating enough operating income to cover its interest expenses during those periods.
Overall, the variations in Palantir Technologies Inc.'s interest coverage ratio indicate fluctuations in its ability to service its debt obligations with its operating income. Investors and analysts should closely monitor this metric to assess the company's financial health and risk profile.
See also:
Palantir Technologies Inc. Class A Common Stock Solvency Ratios