Palantir Technologies Inc. (NASDAQ:PLTR)

Debt Ratios Trend

The debt to equity ratio, when including operating lease liability, shows a consistent decline from 0.30 in 2020 to 0.05 in 2024, indicating a significant reduction in relative debt levels. Similarly, the debt to capital ratio (including operating lease liability) decreased from 0.23 in 2020 to 0.05 in 2024, and the debt to assets ratio follows this downward trend from 0.17 to 0.04 over the same period. This consistent decrease suggests improved financial stability and lower leverage over time.

Financial Leverage

The financial leverage ratio steadily declined from 1.77 in 2020 to 1.27 in 2024, reinforcing the pattern of reduced reliance on debt in the company's capital structure and potentially indicating increased equity financing or retained earnings.

Interest and Fixed Charge Coverage

Interest coverage ratios were negative and deteriorating through 2022, with very large negative values indicating an inability to cover interest expenses during the earlier years. However, there is a marked improvement in 2023, with the interest coverage turning positive to 69.33, suggesting a significant turnaround in earnings relative to interest obligations. The fixed charge coverage ratio follows a similar pattern, moving from negative values (-16.41 in 2020) to a positive 9.48 by 2024, signaling enhanced ability to meet fixed financial commitments, including leases and interest.

Overall Financial Health

The data depicts a clear evolution toward stronger financial health, with declining leverage ratios and improving coverage ratios. The improvement in coverage ratios from negative to positive territory implies an operational or profitability turnaround enabling better servicing of fixed charges and interest expenses. The steady reduction in debt-related ratios suggests conservative financial management or deleveraging efforts during this period.

Total debt

The total debt reported was US$197,977 thousand as of December 31, 2020. There is no subsequent data available for the following years to assess the trend or changes in debt levels.

Total Palantir’s stockholders’ equity

The stockholders’ equity shows a consistent and substantive increase over the reported periods. Starting from US$1,522,550 thousand at the end of 2020, it rose sharply to US$2,291,030 thousand in 2021. This positive growth trajectory continued, reaching US$2,565,326 thousand in 2022, US$3,475,561 thousand in 2023, and finally US$5,003,275 thousand by December 31, 2024. This upward trend indicates substantial capital accumulation and enhanced net assets over the five-year span.

Debt to equity ratio

The debt to equity ratio was relatively low at 0.13 in 2020, suggesting a conservative capital structure with limited leverage at that time. Without data for subsequent years, it is not possible to determine how the debt financing relative to equity evolved beyond 2020.

Total Debt (Including Operating Lease Liability)

There is a consistent decline in total debt from US$456,856 thousand in 2020 to US$229,392 thousand in 2023, indicating a strategic reduction in liabilities. However, in 2024, total debt shows a slight increase to US$239,219 thousand, which may suggest a minor reversal or new borrowing.

Total Stockholders’ Equity

Stockholders’ equity has shown a steady and significant growth over the period, rising from US$1,522,550 thousand in 2020 to US$5,003,275 thousand in 2024. This upward trend reflects a strengthening capital base and possibly retained earnings accumulation or equity issuance.

Debt to Equity Ratio (Including Operating Lease Liability)

This ratio has decreased year over year, from 0.3 in 2020 to 0.05 in 2024. Such a decline indicates an improving financial leverage position, with the company reducing its reliance on debt relative to its equity base, leading to a potentially lower financial risk profile.

The financial data reveals key trends in capital structure and leverage over the periods available. The total capital shows a consistent upward trajectory, nearly tripling from approximately $1.72 billion in 2020 to an estimated $5.00 billion by the end of 2024. This trend suggests significant growth and expansion in the company's capital base during this five-year timeline.

Regarding total debt, the only available data point is from the end of 2020, which reflects a debt level of approximately $198 million. No subsequent debt figures are provided to assess changes or trends in debt levels in later years. Consequently, analysis of leverage evolution is limited.

The debt to capital ratio for 2020 is reported at 0.12, indicating that debt constituted 12% of the total capital at that time. Due to missing data for following years, it is not possible to evaluate if the company’s leverage has increased or decreased in relation to its capital base since 2020.

In summary, the company appears to have expanded its total capital substantially from 2020 through 2024, potentially indicating growth initiatives or increased capitalization. However, with only one point of debt and debt-to-capital ratio data available, assessment of leverage or debt management trends remains incomplete. Future data availability would be necessary to draw more comprehensive conclusions on the company’s financial structure and debt strategy.

Total debt (including operating lease liability)

The total debt shows a declining trend from 2020 to 2023, decreasing from approximately 457 million US dollars to about 229 million US dollars. However, there is a slight increase observed in 2024, where total debt rises to approximately 239 million US dollars. Overall, the level of debt has reduced substantially since 2020, indicating potential deleveraging or improved debt management over the period.

Total capital (including operating lease liability)

Total capital exhibits a consistent upward trend throughout the five-year period. Starting at around 1.98 billion US dollars in 2020, total capital increases significantly, reaching approximately 5.24 billion US dollars by 2024. This substantial growth suggests expansion in the company's capital base, potentially driven by equity issuance, retained earnings accumulation, or asset growth.

Debt to capital (including operating lease liability) ratio

The debt to capital ratio demonstrates a clear downward trajectory from 0.23 in 2020 to 0.05 in 2024. This indicates a marked improvement in the company's capital structure, with debt representing a progressively smaller portion of total capital each year. The declining ratio aligns with the reduction in total debt and increase in total capital, suggesting a strengthening financial position and reduced financial leverage.

Total debt

The available data for total debt is only for the year ending December 31, 2020, and it stands at 197,977 thousand US dollars. No subsequent data is provided, which limits the ability to analyze trends or changes in the company's debt levels over the following years.

Total assets

Total assets show a consistent upward trend across the reported periods. The value increased from approximately 2.69 billion US dollars in 2020 to 3.25 billion in 2021, followed by a moderate increase to 3.46 billion in 2022. The growth accelerated significantly in 2023, reaching about 4.52 billion US dollars, and further increased to approximately 6.34 billion US dollars in 2024. This steady and strong asset growth reflects expansion or accumulation of resources over these years.

Debt to assets ratio

The debt to assets ratio is only available for 2020, recorded at 0.07, indicating that debt constituted a relatively small portion of total assets at that time. Due to the absence of further data, it is not possible to assess how the company’s leverage or capital structure evolved over the subsequent periods.

Total Debt (including operating lease liability)

The total debt shows a downward trend from 456,856 thousand USD at the end of 2020 to 239,219 thousand USD at the end of 2024. There was a significant reduction between 2020 and 2021, followed by gradual decreases through 2023, with a slight increase observed in 2024 compared to the previous year.

Total Assets

Total assets have increased markedly over the period, rising from 2,690,504 thousand USD at the end of 2020 to 6,340,884 thousand USD by the end of 2024. The growth accelerated especially after 2022, indicating substantial asset accumulation, possibly through investments, acquisitions, or retained earnings.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio has consistently decreased each year, starting at 0.17 in 2020 and declining steadily to 0.04 in 2024. This trend indicates improving financial leverage and suggests that the company has been reducing its debt burden relative to its growing asset base.

Overall, the company demonstrates a strengthening financial position over the observed period, characterized by expanding total assets and decreasing leverage. Despite a marginal rise in total debt in the last year, the proportional debt relative to assets continues to decline, highlighting improved solvency and potentially greater financial stability.

The financial data over the five-year period indicates a consistent expansion in the size and capitalization of the company.

Total assets

Total assets have shown a steady and considerable increase throughout the period, rising from approximately 2.69 billion US dollars at the end of 2020 to about 6.34 billion US dollars by the end of 2024. This nearly two-and-a-half-fold growth suggests ongoing asset accumulation, possibly through investments, acquisitions, or organic growth in operations.

Total Palantir’s stockholders’ equity

Shareholders' equity has also expanded significantly, increasing from around 1.52 billion US dollars in 2020 to roughly 5.0 billion US dollars in 2024. This growth reflects an accumulation of retained earnings or new equity issuances and indicates strengthening financial stability and increased net asset value attributable to shareholders.

Financial leverage

The financial leverage ratio has shown a gradual decline, moving from 1.77 in 2020 to 1.27 in 2024. This indicates that the company is becoming less reliant on debt relative to equity in financing its assets. The trend suggests an improving capital structure with higher equity proportions supporting the asset base, which could imply reduced financial risk.

Overall, the data demonstrate a robust growth trajectory in both the asset base and equity capital, accompanied by a moderate reduction in financial leverage. These trends collectively point to an enhanced financial position over the period analyzed.

Earnings Before Interest and Tax (EBIT)

The EBIT demonstrates a significant improvement over the observed periods. In the year ending December 31, 2020, the EBIT was deeply negative at approximately -$1,164,888 thousand. This negative trend lessened considerably in 2021 to around -$484,854 thousand and further decreased in magnitude by 2022 to nearly -$356,969 thousand. A notable turnaround is observed in 2023, where EBIT turned positive, reaching $240,561 thousand and continued rising to $489,173 thousand by 2024. This indicates a transition from operational losses to profitability over the years in question.

Interest Expense

Interest expense shows a declining trend from $14,139 thousand in 2020 to $3,640 thousand in 2021, with a slight increase to $4,058 thousand in 2022, followed by a small decrease to $3,470 thousand in 2023. The data for 2024 is not available. This overall reduction in interest expense suggests improved debt management or lower borrowings.

Interest Coverage Ratio

The interest coverage ratio was strongly negative in the initial years, reflecting a poor ability to cover interest expenses with EBIT. The ratios were approximately -82.39 in 2020, -133.2 in 2021, and -87.97 in 2022. However, in 2023, this ratio sharply improved to a positive 69.33, evidencing the company’s improved capacity to meet interest obligations due to the return to positive operating earnings. Data for 2024 is unavailable.

Earnings before fixed charges and tax

There is a notable improvement in earnings before fixed charges and tax over the analyzed period. Starting from a significant loss of approximately -1,111,312 thousand US dollars in 2020, the loss considerably decreased in 2021 and 2022 to -433,524 and -301,486 thousand US dollars respectively. In 2023, the metric turned positive with earnings of 302,533 thousand US dollars, and this positive trend continued into 2024 with an increase to 546,828 thousand US dollars.

Fixed charges

Fixed charges have exhibited minor fluctuations over time but generally remained within a relatively stable range. They decreased from 67,715 thousand US dollars in 2020 to 54,970 thousand US dollars in 2021, increased slightly in 2022 to 59,541 thousand US dollars, rose again in 2023 to 65,442 thousand US dollars, and then decreased in 2024 to 57,655 thousand US dollars. This suggests a consistent pattern of fixed costs without major volatility.

Fixed charge coverage ratio

The fixed charge coverage ratio demonstrates a significant upward trend. Initially, the ratio was deeply negative, indicating inability to cover fixed charges from earnings before fixed charges and tax. It improved from -16.41 in 2020 to -7.89 in 2021 and then to -5.06 in 2022. The ratio turned positive in 2023 at 4.62 and further improved to 9.48 in 2024. This reflects an enhanced capacity to meet fixed financial obligations, coinciding with the transition from losses to profitability in earnings before fixed charges and tax.