Palantir Technologies Inc. Class A Common Stock (PLTR)

Financial leverage ratio

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

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,522,420K ÷ $3,475,560K
= 1.30

The financial leverage ratio for Palantir Technologies Inc. Class A Common Stock has shown a decreasing trend over the past four years, indicating a reduction in the company's reliance on debt financing to fund its operations and growth.

The ratio stood at 1.77 in 2020, suggesting that for every dollar of equity, the company had $1.77 of total assets. This high ratio could indicate higher financial risk and potential volatility in the company's financial position.

However, the ratio has gradually declined to 1.30 in 2023, reflecting a more conservative capital structure and improved financial stability. A lower financial leverage ratio generally indicates a lower risk of bankruptcy and a greater ability to weather economic downturns.

Overall, the downward trend in Palantir Technologies Inc.'s financial leverage ratio signifies a positive shift towards a healthier balance between equity and debt in its capital structure, which may enhance the company's financial resilience and long-term sustainability.