Palantir Technologies Inc. Class A Common Stock (PLTR)

Interest coverage

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	402,187	367,824	294,100	232,977	167,107	-33,367	-241,053	-359,573	-519,111	-497,542	-465,161	-484,931	-516,472	-1,276,121
Interest expense (ttm)	US$ in thousands	136	878	2,195	3,470	5,046	5,386	4,739	4,058	2,947	2,474	2,394	3,640	4,853	6,329
Interest coverage		2,957.26	418.93	133.99	67.14	33.12	-6.20	-50.87	-88.61	-176.15	-201.11	-194.30	-133.22	-106.42	-201.63

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $402,187K ÷ $136K
= 2,957.26

Palantir Technologies Inc.'s interest coverage ratio has exhibited significant fluctuations over the past 14 quarters. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its operating income.

In the most recent quarter ended September 30, 2024, the interest coverage ratio of Palantir Technologies Inc. was a substantial 2,957.26. This indicates that the company's operating income was 2,957 times higher than its interest expenses for that period, reflecting a strong ability to cover interest payments.

Looking back, the interest coverage ratio has shown a generally improving trend since the negative ratios reported in the first quarter of 2022. The company has made remarkable progress in strengthening its ability to cover interest payments, as evidenced by the significant improvement in the ratio over the quarters.

It is important to note that a high interest coverage ratio signifies that a company is in a better position to meet its debt obligations from its operating income. However, investors should also consider other factors such as the overall debt levels and the sustainability of the operating income generating capacity of the company.

Overall, Palantir Technologies Inc.'s interest coverage ratio has shown a positive trend, reaching a robust level in the most recent quarter, which reflects the company's improved ability to service its debt obligations from its operational earnings.