Palantir Technologies Inc. (NASDAQ:PLTR)

Debt Ratios

The debt ratios, including debt to equity, debt to capital, and debt to assets, all measured including operating lease liabilities, exhibit a consistent downward trend from March 2022 through September 2025. Debt to equity decreased from 0.11 to 0.04, debt to capital declined from 0.1 to 0.03, and debt to assets fell from 0.08 to 0.03 over the same period. This progression indicates a reduction in financial leverage from borrowed funds relative to equity, capital, and asset bases, signifying a strengthening balance sheet with improved solvency.

Financial Leverage

The financial leverage ratio showed a modest but steady decline from 1.4 in early 2022 to approximately 1.23 by late 2025. This suggests a gradual decrease in the company's reliance on debt relative to its equity, supporting the interpretation of improving financial stability and risk profile.

Interest Coverage Ratio

The interest coverage ratio experienced significant volatility and a marked improvement over time. Initially, the ratio was strongly negative, reaching values such as -194.27 and worsening to -201.09, indicating insufficient earnings to cover interest expenses and potentially signaling financial distress. However, starting from mid-2023, this ratio improved substantially, turning positive at 34.43, and rising sharply to 3786.9 by the third quarter of 2024. The data for the last two periods is unavailable. This dramatic increase suggests a significant turnaround in the company's earnings ability relative to its interest obligations, possibly due to enhanced profitability, reduced interest expenses, or both.

Overall Financial Trends

Over the analyzed periods, the company demonstrates a clear trend toward improved financial health. The steady decline in debt ratios and financial leverage reflects careful management of debt levels and strengthening equity positions. Concurrently, the remarkable improvement in interest coverage ratio indicates enhanced operational performance and earnings generation capacity, reducing financial risk and dependency on external financing. Collectively, these trends suggest a positive trajectory in terms of creditworthiness and financial resilience.

The financial data indicates a consistent upward trend in the company's stockholders’ equity over the observed periods. Starting from approximately 2.36 billion US dollars in the first quarter of 2022, the equity has steadily increased each quarter, reaching around 6.59 billion US dollars by the third quarter of 2025. This growth signifies a strengthening equity base and suggests an accumulation of retained earnings, capital injections, or a rise in asset values relative to liabilities.

Total Palantir’s stockholders’ equity (US$ in thousands)

The stockholders’ equity has shown continuous growth across all quarters:

From Q1 2022 to Q4 2022, there was an increase from roughly 2,364,746 to 2,565,326 thousand US dollars.

The growth accelerated in the subsequent years, with equity rising to approximately 3,475,561 thousand US dollars by Q4 2023 and continuing to increase through 2024 to reach about 5,003,275 thousand US dollars by the end of the year.

By the third quarter of 2025, equity further grew to an estimated 6,590,457 thousand US dollars, signaling robust expansion over the period.

Total debt and Debt to equity ratio

There is no data reported for total debt and debt to equity ratio during the analyzed periods. This absence of data prevents any direct assessment of leverage or the comparison of debt relative to equity.

The lack of disclosed liabilities or debt figures could imply a minimal debt position, a purely equity-financed balance sheet, or a lack of available data.

Overall, the growth in stockholders’ equity demonstrates increasing shareholder value and financial strength. However, due to the missing debt information, a comprehensive leverage analysis is not feasible. The trend suggests the company has predominantly relied on equity; nonetheless, the absence of debt metrics limits a full assessment of financial risk and capital structure balance.

The financial data reveals several noteworthy trends in the quarterly performance. Over the observed periods, total debt, including operating lease liabilities, demonstrates a general declining trend. Starting from a level above $267 million in early 2022, total debt decreases gradually, reaching around $235 million by late 2025. Although there are some fluctuations, such as a rise noted in mid-2024, the overall direction indicates prudent debt management or debt reduction efforts.

Conversely, total stockholders’ equity exhibits a strong upward trajectory across the same timeframe. Beginning at approximately $2.36 billion in early 2022, equity steadily increases each quarter, culminating in a value close to $6.59 billion by the end of the projected period in 2025. This steady growth in equity suggests consistent profitability, retained earnings accumulation, or potential capital injections, reinforcing the company’s financial strength.

The ratio of debt to equity follows a clear downward movement, declining from around 0.11 at the start of 2022 to approximately 0.04 by the end of 2025. This reduction indicates a lower proportion of debt relative to equity, enhancing financial stability and reducing leverage risk. The declining leverage ratio reflects the combined effect of decreasing debt levels and increasing equity, which could signal improved creditworthiness and greater financial flexibility.

Total Debt Trends

Overall decrease with minor fluctuations, indicating effective debt management or payment strategies.

Total Equity Trends

Consistent and significant increase, demonstrating financial strengthening and possible retention of earnings or equity financing.

Debt to Equity Ratio

Progressive decline over time, pointing to lower financial leverage and enhanced solvency.

The financial data reveals a consistent upward trend in the total capital over the observed periods from March 31, 2022, through September 30, 2025. The total capital increased steadily from approximately $2.36 billion to around $6.59 billion. This growth suggests a strong capitalization strategy and potentially improving equity and asset base over time.

Total capital

The total capital shows a continuous rise period over period without any decline, indicating expanding resources or investments. The increase appears relatively steady, with the most significant gains occurring in later quarters, suggesting an acceleration in capital growth.

Total debt and Debt to capital ratio

There is no reported data for total debt or the debt-to-capital ratio, which limits the ability to analyze leverage, solvency, or risk profile changes. The absence of this information prevents evaluation of the company's financing structure or reliance on debt over equity.

Overall, the available data suggests a robust improvement in the company's capital base. However, without corresponding debt figures, conclusions regarding financial risk, leverage, or capital structure optimization remain incomplete. Further data is needed to assess the balance between debt and equity financing and related financial health indicators.

The analysis of the financial data reveals distinct trends in the company's leverage and capital structure over the examined periods. There is a noticeable general decrease in total debt, albeit with some fluctuations. Starting from a high point near $268 million, total debt exhibits a downward trajectory overall, reaching its lowest levels around the later periods, though a temporary spike is observed around mid-2024 before it resumes its declining trend.

Conversely, total capital demonstrates a consistent and steady increase throughout the periods. Beginning at approximately $2.63 billion, total capital grows persistently, surpassing $6.8 billion by the final period. This growth indicates an expansion in the company's capital base, likely reflective of retained earnings, equity raises, or other capital inflows.

The debt to capital ratio corresponds logically to the movements in both debt and capital. The ratio decreases over time from about 0.10 to a low of approximately 0.03, indicating a declining reliance on debt financing relative to overall capital. This downward trend is indicative of an improving leverage position and possibly a strengthening balance sheet with a greater emphasis on equity or other capital components compared to debt. The slight uptick in debt for mid-2024 briefly raises the ratio, but it swiftly declines again in subsequent periods.

Total Debt (including operating lease liability)

Shows an overall declining trend with some short-term increases, moving from around $268 million down to approximately $235 million towards the end of the analyzed intervals.

Total Capital (including operating lease liability)

Exhibits steady and substantial growth from about $2.63 billion to nearly $6.83 billion, reflecting the expansion of the company's capital resources over time.

Debt to Capital Ratio (including operating lease liability)

Decreases consistently from around 0.10 to near 0.03, highlighting a reduction in financial leverage and an increasing proportion of capital funded by equity or other non-debt sources.

The analysis of the quarterly financial data reveals several notable trends in the company's asset base and related financial metrics over the observed period.

Total Assets

The total assets exhibit a consistent upward trajectory across all quarters under review. Starting from approximately 3.32 billion US dollars at the end of the first quarter of 2022, there is a steady increase each quarter, culminating in roughly 8.11 billion US dollars by the third quarter of 2025. This progression indicates sustained growth in the company's asset base over the examined timeframe.

Total Debt and Debt to Assets Ratio

No data is provided for total debt or the debt to assets ratio throughout the entire period. As a result, analysis related to the company's leverage, debt management, or risk profile remains indeterminate based on the available information.

Total Debt (including operating lease liability)

Over the observed periods, total debt exhibits a generally declining trend from the initial value of approximately $268 million to around $235 million by the final quarter. Notably, there are fluctuations within the timeframe; for example, an increase occurs in the middle quarters of 2024, rising from about $217 million to nearly $259 million, before resuming the downward pattern. Overall, the debt levels demonstrate a gradual reduction with intermittent rises.

Total Assets

Total assets show a consistent and strong upward trend throughout the timeframe. Starting at roughly $3.3 billion, assets steadily increase each quarter, reaching approximately $8.1 billion by the end of the period. This growth is smooth and persistent, reflecting an expansion in the asset base with no significant downturns or plateaus.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio declines markedly over the period analyzed. Beginning at about 0.08, the ratio steadily decreases to around 0.03 by the final quarter. This downward movement indicates an improving capital structure, with debt becoming a smaller proportion of the total asset base. The ratio’s decline aligns with the observed decrease in total debt and the substantial growth in total assets, suggesting strengthened financial stability and lower leverage over time.

Total assets

The total assets exhibited a consistent upward trend over the observed periods. Starting from approximately 3.32 billion US dollars at the end of the first quarter of 2022, the asset base increased steadily to reach over 8.11 billion US dollars by the third quarter of 2025. This indicates a continuous expansion in the company's asset holdings over the three and a half years examined.

Total Palantir’s stockholders’ equity

Stockholders’ equity demonstrated a similar growth pattern, rising from roughly 2.36 billion US dollars at the end of Q1 2022 to approximately 6.59 billion US dollars by Q3 2025. This reflects an ongoing strengthening of the equity base, suggesting retained earnings and possibly additional equity financing contributed to the growth throughout the periods.

Financial leverage ratio

The financial leverage ratio showed a gradual decline from 1.4 in early 2022 to around 1.23 by Q3 2025. This decreasing trend in financial leverage indicates a relative reduction in the company’s reliance on debt financing compared to equity. The ratio’s stability around the range of 1.3 to 1.4 in the initial periods followed by a steady decrease suggests a conservative shift in capital structure, possibly enhancing financial stability.

Earnings before interest and tax (EBIT)

The EBIT figures show a marked improvement over the period analyzed. Initially, there were significant negative values through the first three quarters of 2022, peaking at a loss of approximately $176 million in Q2 2022. However, starting Q4 2022, EBIT turned positive and demonstrated a trend of increasing profitability. This upward trajectory continues steadily through 2023 and 2024, culminating in a substantial rise by Q3 2025, reaching nearly $481 million. This pattern indicates enhanced operational efficiency or revenue growth leading to improved core earnings before financing and taxes.

Interest expense

Interest expenses remained relatively low and stable, fluctuating modestly within a narrow range during the periods with available data. The values start around $594 thousand in Q1 2022, peak at around $1.7 million by Q4 2022, and then show a decline in subsequent quarters with incomplete data beyond Q4 2022. This suggests limited variability in the cost of debt or changes in debt levels during the initial observation periods.

Interest coverage ratio

The interest coverage ratio reflects significant improvement alongside EBIT growth. Early in the timeline, the ratio is deeply negative and extremely low (e.g., approximately -201 in Q2 2022), indicating that EBIT was insufficient to cover interest expenses by a large margin. By Q3 2022, the ratio improves but remains negative. As EBIT becomes positive in Q4 2022, the coverage ratio turns positive and begins rising sharply, reaching a notably high level (above 149) by Q1 2024 and skyrocketing to nearly 3,787 in Q3 2024. This dramatic increase implies strong earnings relative to interest obligations, enhancing financial stability and the company’s ability to service debt comfortably.

Overall Trends and Insights

The financial data reveal a transition from operational losses to significant profits in EBIT, which primarily drives the improvements in the interest coverage ratio. The relatively low and stable interest expenses combined with improving EBIT suggest effective management of debt and operational costs. The company's ability to cover interest expenses improves markedly, indicating reduced financial risk over time. These trends collectively suggest a solidification of the company’s operating performance and financial position.