Palantir Technologies Inc. Class A Common Stock (PLTR)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	6,340,880	4,522,420	3,461,240	3,247,450	2,690,500
Total stockholders’ equity	US$ in thousands	5,003,280	3,475,560	2,565,330	2,291,030	1,522,550
Financial leverage ratio		1.27	1.30	1.35	1.42	1.77

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,340,880K ÷ $5,003,280K
= 1.27

The financial leverage ratio of Palantir Technologies Inc. Class A Common Stock has shown a decreasing trend over the past five years, declining from 1.77 in December 2020 to 1.27 in December 2024. This indicates that the company's reliance on debt to finance its operations has been gradually decreasing over this period. A lower financial leverage ratio suggests that the company is using less debt relative to its equity, which can be seen as a positive sign of financial stability and risk management. However, it is important to consider the specific industry and business circumstances when interpreting this ratio, as different companies may have varying optimal levels of leverage based on their operations and growth strategies. Overall, the decreasing trend in Palantir's financial leverage ratio may indicate a more conservative approach to capital structure and a reduced risk of financial distress.