Palantir Technologies Inc. Class A Common Stock (PLTR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.27 | 1.30 | 1.35 | 1.42 | 1.77 |
Palantir Technologies Inc. Class A Common Stock demonstrates excellent solvency ratios, indicating a strong financial position and low risk of insolvency. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio consistently stand at 0.00 from December 31, 2020, to December 31, 2024, suggesting that the company operates with minimal debt relative to its assets and capital structure.
Furthermore, the financial leverage ratio shows a declining trend from 1.77 on December 31, 2020, to 1.27 on December 31, 2024. This decreasing trend reflects a decreasing reliance on debt financing to support its operations over the years, reinforcing the company's financial stability and ability to meet its financial obligations comfortably without excessive leverage.
Overall, the solvency ratios of Palantir Technologies Inc. Class A Common Stock point towards a robust financial position, prudent debt management, and a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 34.57 | -87.97 | -133.20 | -82.39 |
The interest coverage ratio indicates a company's ability to cover its interest expenses with its operating income. For Palantir Technologies Inc. Class A Common Stock, the interest coverage ratio has shown significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was at a concerning level of -82.39, indicating that the company's operating income was insufficient to cover its interest payments. This suggests a high financial risk and the potential for difficulties in meeting debt obligations.
The situation worsened by December 31, 2021, with the interest coverage ratio falling to -133.20, signaling a further deterioration in the company's ability to cover its interest expenses. Such low levels could raise alarm bells for creditors and investors.
By December 31, 2022, although the interest coverage ratio improved slightly to -87.97, it still remained in negative territory, indicating that the company was struggling to generate enough operating income to meet its interest payments.
However, the trend reversed significantly by December 31, 2023, when the interest coverage ratio spiked to 34.57. This substantial improvement suggests that Palantir Technologies Inc. Class A Common Stock experienced a notable increase in its operating income, which resulted in a more robust ability to cover its interest obligations.
Unfortunately, there is no data available for December 31, 2024, which limits the ability to assess the company's current interest coverage ratio. It would be advisable to monitor future financial statements to evaluate the company's ability to maintain or improve its interest coverage position.
See also:
Palantir Technologies Inc. Class A Common Stock Solvency Ratios