Palantir Technologies Inc. Class A Common Stock (PLTR)

Interest coverage

		Dec 31, 2024	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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	299,360	365,154	332,725	237,460	160,694	134,461	-67,947	-254,092	-356,969	-519,111	-497,504	-465,084	-484,854	-516,395	-1,275,089	-1,235,304	-1,167,566	-1,169,020	-450,958	-487,207
Interest expense (ttm)	US$ in thousands	0	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	11,385	14,139	14,991	13,079	7,433
Interest coverage		—	2,684.96	378.96	108.18	46.31	26.65	-12.62	-53.62	-87.97	-176.15	-201.09	-194.27	-133.20	-106.41	-201.47	-108.50	-82.58	-77.98	-34.48	-65.55

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $299,360K ÷ $0K
= —

The interest coverage ratio for Palantir Technologies Inc. Class A Common Stock has shown significant fluctuations over the analyzed periods. The ratio was negative in most quarters, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses. This raised concerns about the company's financial health and ability to meet its debt obligations.

The interest coverage ratio improved markedly in the latter part of the analysis period, particularly from March 31, 2023, onwards. The ratio turned positive in subsequent quarters, indicating that Palantir's earnings were now more than sufficient to cover its interest expenses. This positive trend suggests that the company's financial position strengthened, potentially due to enhanced profitability or reduced interest costs.

Overall, the improving interest coverage ratio for Palantir Technologies Inc. Class A Common Stock in the later periods reflects a positive development in the company's ability to manage its debt obligations and suggests a more sustainable financial position. However, ongoing monitoring of the trend is advisable to assess the company's continuing ability to cover its interest expenses.