Palantir Technologies Inc. Class A Common Stock (PLTR)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	232,995	-359,580	-484,854	-1,164,890
Interest expense	US$ in thousands	3,470	4,058	3,640	14,139
Interest coverage		67.15	-88.61	-133.20	-82.39

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $232,995K ÷ $3,470K
= 67.15

The interest coverage ratio for Palantir Technologies Inc. Class A Common Stock has exhibited significant fluctuations over the past four years. In 2023, the interest coverage ratio improved to 67.15, indicating the company generated more than enough operating income to cover its interest expenses. This is a positive sign of the company's ability to meet its interest obligations.

However, the interest coverage ratio was negative in the previous three years, with particularly low values of -88.61 in 2022, -133.20 in 2021, and -82.39 in 2020. A negative interest coverage ratio means that the company's operating income was insufficient to cover its interest expenses, which could indicate financial stress.

Overall, while the recent improvement in the interest coverage ratio is a positive development, it is important for investors and stakeholders to monitor Palantir Technologies Inc.'s financial performance closely to ensure the company can continue meeting its interest obligations in the future.