Palantir Technologies Inc. (NASDAQ:PLTR)

Debt Ratios

The debt to equity ratio, including operating lease liability, displays a clear downward trend from 0.25 in March 2021 to 0.04 by June 2025. This suggests a consistent reduction in reliance on debt relative to equity over the period. Similarly, debt to capital (including operating lease liability) decreases from 0.20 in March 2021 to 0.04 by mid-2025, reinforcing the diminishing leverage in the company’s capital structure. The debt to assets ratio (including operating lease liability) follows the same pattern, declining steadily from 0.15 to 0.03, indicating that liabilities have become a smaller proportion of the total asset base.

Financial Leverage

Financial leverage ratio gradually declines from 1.67 in March 2021 to 1.24 by June 2025. The modest decline in this ratio indicates a slight reduction in the use of borrowed funds relative to equity financing, reflecting an improving financial structure with potentially lower financial risk.

Interest Coverage

Interest coverage ratio shows significant volatility. It is negative and deteriorates sharply from -133.2 in December 2021 to -201.09 in March 2022, indicating the company was not generating sufficient earnings to cover interest expenses and possibly reporting losses during this period. However, starting around March 2023, the ratio turns positive and improves markedly, reaching a peak of 3786.9 in June 2024. This dramatic improvement suggests a recovery in operating performance and the company’s ability to comfortably cover interest obligations in the later years analyzed. The absence of data beyond June 2024 limits further assessment.

Overall Trends and Insights

Across the observed periods, there is a consistent trend of decreasing leverage as shown by multiple debt ratios, indicating a strategic focus on strengthening the balance sheet by reducing debt levels or increasing equity. The improved financial leverage ratio complements this view, reflecting a more conservative approach to financing. The interest coverage ratio evolution reveals an initial phase of financial stress with negative coverage, transitioning to a robust position where operating earnings far exceed interest costs. This transition highlights a significant improvement in operational profitability or efficient cost management over time, possibly supported by deleveraging efforts.

Total Debt

The total debt was reported as $198,185 thousand as of March 31, 2021. Subsequent periods show no available data on total debt, indicating either no debt or unreported figures during these quarters.

Total Palantir’s Stockholders’ Equity

Stockholders’ equity demonstrated a consistent upward trajectory over the observed period, starting from $1,805,943 thousand at the end of Q1 2021 and reaching $5,928,901 thousand by Q2 2025. This significant increase reflects strong equity growth, nearly tripling over the course of about four years.

Quarterly growth appears steady, with periodic accelerations particularly notable between Q4 2023 and Q2 2025, where equity rose from approximately $3,475,561 thousand to nearly $5,928,901 thousand, indicating enhanced capitalization and possibly accumulated earnings or capital raises.

Debt to Equity Ratio

The debt-to-equity ratio was reported only for Q1 2021 at 0.11, signifying a low level of debt relative to equity at that time. Due to missing data in subsequent periods, trend analysis is limited; however, given the absence of reported debt and the rising equity base, it is reasonable to infer that the company's leverage remained low or stable.

The analyzed financial data reveals the following trends and insights regarding the company’s capital structure and leverage over the indicated periods.

Total Debt (including operating lease liability)

The total debt exhibits a generally decreasing trend from March 31, 2021, through December 31, 2024, with fluctuations observed in some quarters. Initially, debt sharply declined from $452.7 million in March 2021 to approximately $249.8 million by June 2021 and remained relatively stable with minor fluctuations around the $240 million to $260 million range thereafter. Notably, there is a small increase in debt during the mid-2024 quarters before it dips again by mid-2025 to approximately $237.8 million. Overall, despite minor seasonal or operational variability, total debt shows a consistent effort toward reduction or maintenance at a lower level compared to the first quarter of 2021.

Total Stockholders’ Equity

Equity demonstrates a continuous and strong upward trajectory over the entire period under review. Starting at approximately $1.81 billion in March 2021, the equity base steadily grows quarter over quarter, reaching approximately $5.93 billion by June 2025. This growth suggests sustained profitability, retained earnings accumulation, capital injections, or favorable revaluations contributing to a robust increase in shareholders' equity. The pace of increase appears to accelerate particularly from early 2023 onward, indicating enhanced financial strength or growth ambitions.

Debt to Equity Ratio

Correlating with the trends in debt and equity, the debt-to-equity ratio steadily declines from 0.25 in March 2021 to a low of 0.04 by June 2025. This downward trend reflects decreasing reliance on debt financing relative to equity. Early in the timeline, the ratio drops quickly within the first year and stabilizes between 0.10 and 0.11 until late 2022. Subsequently, there is a further gradual reduction in leverage, reflecting an improving balance sheet with stronger equity growth outpacing debt levels. By the end of the latest period, the company exhibits a conservative capital structure with minimal debt proportion relative to its equity base.

In summary, the data reflects a strategic shift toward strengthening the equity base while reducing or containing debt levels, resulting in a significant lowering of financial leverage. This pattern indicates an enhancement of financial stability and potentially greater flexibility for future investment or operational initiatives.

Total debt

The available data point for total debt is only recorded at the end of March 2021, amounting to approximately $198 million. There is no subsequent data provided to determine trends or changes in the debt level over the following quarters and years.

Total capital

Total capital demonstrates a consistent upward trend throughout the observed periods, starting from about $2.0 billion at the end of March 2021 and increasing steadily to approximately $5.9 billion by June 2025. This indicates sustained growth in the company’s capital base over time, with the most significant increases occurring in the later periods, suggesting an acceleration in capital accumulation or investment during recent quarters.

Debt to capital ratio

Only one data point is available for the debt to capital ratio, recorded at 0.1 as of March 2021. Without subsequent data, it is not possible to assess the company's leverage trend or how the relationship between debt and capital has evolved over time.

The analysis of the financial data reveals several key trends related to the company's debt and capital structure over the examined periods.

Total Debt (including operating lease liability)

The total debt exhibited a notable decrease from US$452.7 million in March 2021 to approximately US$237.8 million by June 2025. This downward trend was not strictly linear, as the debt level fluctuated slightly but overall demonstrated a consistent declining trajectory. Initial rapid reduction occurred between March 2021 and June 2021, followed by relatively moderate variations, with total debt generally stabilizing around the US$230-260 million range from late 2021 onwards. The modest fluctuations after that period were characterized by slight upticks and reductions, with the lowest levels occurring towards the end of the dataset in 2025.

Total Capital (including operating lease liability)

Total capital expanded significantly from US$2.26 billion in March 2021 to approximately US$6.17 billion in June 2025. This reflects a robust growth trajectory across the entire period, with capital increasing steadily quarter over quarter. The growth rate appeared relatively consistent, especially after December 2021, highlighting significant capital base expansion. Such an increase suggests ongoing business scaling or equity/debt injections contributing to higher capital levels.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio decreased substantially over the period, from 0.20 in March 2021 to 0.04 by June 2025, indicating a marked improvement in the company’s capital structure. This declining ratio aligns with the simultaneous reduction in total debt and strong growth in total capital. The decline was most pronounced in the early periods, dropping from 0.20 to around 0.10 by the end of 2021, then progressively tapering to very low levels under 0.10 throughout 2023 to 2025. The sustained low ratio in the later periods reflects a relatively conservative leverage position, possibly indicating reduced financial risk or a strategic shift toward lower reliance on debt financing.

Overall, the data demonstrates a strategic deleveraging process coupled with significant capital growth, resulting in a more robust and less leveraged financial posture over the analyzed timeframe.

The analysis of the financial data over the reported periods reveals several notable trends in the company's capital structure and asset base.

Total assets

The total assets consistently increased throughout the reported quarters, demonstrating ongoing growth in the company's asset base. Beginning at approximately 3.01 billion USD at the end of Q1 2021, assets rose steadily, reaching about 7.37 billion USD by Q2 2025. This upward trajectory indicates continuous expansion or accumulation of resources over time.

Total debt

The total debt data is only available for the first period, showing 198.2 million USD as of March 31, 2021. There are no subsequent data points to assess changes in leverage directly beyond this quarter.

Debt to assets ratio

The debt to assets ratio, provided only for the initial period (0.07), suggests that at that time, the company maintained a relatively low level of debt compared to its assets. Due to the absence of further ratio data, no conclusions can be drawn about trends or shifts in leverage relative to asset growth over the subsequent periods.

Overall, the company exhibited strong asset growth from early 2021 through mid-2025, which may reflect reinvestment, acquisitions, or other asset-building activities. The available data indicates an initially low debt level relative to assets, implying a conservative capital structure at the start, but the absence of later debt figures prevents assessment of whether this prudent leverage was maintained, increased, or reduced as assets expanded.

The financial data reveals several key trends related to the company's debt and asset levels over the observed periods.

Total Debt (including operating lease liability)

The total debt exhibits a general declining trend from March 31, 2021, through June 30, 2025. Initially, debt stands at approximately $452.7 million but decreases sharply by mid-2021 and fluctuates moderately afterward. From early 2023 to mid-2025, the debt remains relatively stable with slight decreases, reaching around $237.8 million by June 30, 2025. This reduction in debt over time suggests efforts to manage or pay down liabilities.

Total Assets

Total assets demonstrate a consistent upward trajectory throughout the entire period. Starting at roughly $3.01 billion in March 2021, assets increase steadily each quarter, reaching close to $7.37 billion by June 2025. This growth in asset base indicates expansion and accumulation of resources, reflecting potentially increased operational scale or investments.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio shows a marked declining pattern, starting at 0.15 in early 2021 and reducing steadily to 0.03 by mid-2025. This ratio's decline corroborates the simultaneous trends of decreasing debt and increasing assets, signaling a strengthening balance sheet with improved financial leverage and potentially lower financial risk.

Collectively, these trends suggest that the company is progressively lowering its leverage while expanding its asset base. The reduction in the debt to assets ratio points to more conservative financial management and a healthier capital structure over the analyzed periods.

The financial data reveals a consistent expansion in total assets over the observed periods, with values increasing from approximately US$3.01 billion at the end of Q1 2021 to roughly US$7.37 billion by Q2 2025. This growth trajectory indicates ongoing asset accumulation, suggesting an overall expansion in the company’s asset base.

Similarly, total stockholders’ equity showed a steady upward trend, rising from about US$1.81 billion in early 2021 to nearly US$5.93 billion by mid-2025. Such a progression reflects sustained value creation for shareholders and potentially retained earnings reinvested into the business.

Total assets

Exhibited a generally steady increase throughout the reported quarters, highlighting consistent asset growth by more than double over the analyzed timeframe.

Total Palantir’s stockholders’ equity

Followed a similar positive trend, with equity nearly tripling over the period, indicative of strengthened financial foundations and increased shareholder investment or accumulated earnings.

Financial leverage (ratio)

Displayed a gradual decline from 1.67 in March 2021 to about 1.24 by June 2025. This decreasing leverage ratio indicates a reduction in reliance on debt financing relative to equity, signifying an improving financial risk profile and possibly a more conservative capital structure.

Overall, the analysis indicates that the company has been steadily growing its asset base and strengthening equity while simultaneously managing to reduce financial leverage, reflecting prudent financial management and a shift towards greater financial stability over the examined periods.

Earnings Before Interest and Tax (EBIT)

The EBIT figures show significant fluctuations over the analyzed quarters. From March 2021 to December 2021, EBIT remained negative, with values ranging from approximately -118.5 million to -143.7 million USD, indicating persistent operating losses. Entering 2022, the losses fluctuated sharply; the first three quarters showed negative EBIT around -98.7 million to -176.1 million USD. However, by the last quarter of 2022, EBIT turned positive at approximately 39.6 million USD, signaling a substantial operational improvement. This positive trend largely continued through 2023 and into 2024, with EBIT increasing consistently from 22.1 million USD in March 2023 to a peak of 157.2 million USD by September 2024. Notably, a dip occurred at the end of 2024 to about 80.5 million USD, followed by a strong rebound in the first half of 2025, reaching the highest reported level of 332.2 million USD by June 2025. Overall, the trend shows a transition from sustained losses to increasing profitability over the period.

Interest Expense

Interest expense remained relatively stable and low compared to EBIT values throughout the reported quarters. From March 2021 to December 2022, interest expense fluctuated mildly, generally staying below 1.8 million USD, with some quarters showing slight increases, particularly in late 2022. In 2023, interest expense typically stayed around 700,000 to 1.3 million USD per quarter. Data for interest expense appears incomplete for quarters beyond December 2023, omitting detailed figures for 2024 and 2025. However, the available data suggest that interest cost did not escalate significantly in proportion to the improvements in EBIT.

Interest Coverage Ratio

The interest coverage ratio was markedly negative during 2021 and 2022, reflecting the negative EBIT values and indicating challenges in covering interest expenses from operating income. For example, ratios ranged approximately from -87.97 to -201.09 in this timeframe, demonstrating poor coverage and potential financial stress. A notable improvement began in late 2022, when the ratio moved from negative to positive territory, reaching a value of 34.43 at the end of 2022. Subsequently, the ratio improved substantially in 2023 and 2024, rising to 69.33, then 149.97, and peaking at an exceptional 3,786.9 by the latter part of 2024. The data for interest coverage ratio in 2025 are not present, but the trend up to 2024 suggests a strong capacity to cover interest costs from operating earnings, in line with the EBIT recovery.

Summary Insights

The financial data depict a company undergoing a significant turnaround in operational performance during the reported quarters. EBIT transitioned from persistent negative values through 2021 and early 2022 to stable and then growing positive profitability by late 2022, persisting into 2025. This improvement in operational earnings dramatically improved the ability to cover interest expenses, as evidenced by the increasing interest coverage ratio. Interest expense remained relatively small and stable in comparison, likely contributing minimally to the overall financial burden. The dramatic increase in EBIT and interest coverage ratio implies enhanced operational efficiency, better profitability, and improved financial stability over time.