: 0.07 (As of Sep. 2023)
Palantir Technologies's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $52 Mil. Palantir Technologies's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $184 Mil. Palantir Technologies's Total Stockholders Equity for the quarter that ended in Sep. 2023 was $3,190 Mil. Palantir Technologies's debt to equity for the quarter that ended in Sep. 2023 was 0.07.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Palantir Technologies's Debt-to-Equity or its related term are showing as below:
PLTR' s Debt-to-Equity Range Over the Past 10 Years
Min: -0.2 Med: 0.11 Max: 0.39
Current: 0.07
During the past 5 years, the highest Debt-to-Equity Ratio of Palantir Technologies was 0.39. The lowest was -0.20. And the median was 0.11.
Palantir Technologies Debt-to-Equity Historical Data
The historical data trend for Palantir Technologies's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
| Palantir Technologies Annual Data | ||||||
| Trend | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | |
| Debt-to-Equity | - | -0.20 | 0.30 | 0.11 | 0.10 | |
| Palantir Technologies Quarterly Data | |||||||||||||||||||
| Dec18 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | |
| Debt-to-Equity |  | | | | | | | | | | | | | | 0.10 | 0.10 | 0.10 | 0.08 | 0.07 |
Competitive Comparison
For the Software - Infrastructure subindustry, Palantir Technologies's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palantir Technologies Debt-to-Equity Distribution
For the Software industry and Technology sector, Palantir Technologies's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Palantir Technologies's Debt-to-Equity falls into.
Palantir Technologies Debt-to-Equity Calculation
Debt to Equity measures the financial leverage a company has.
Palantir Technologies's Debt to Equity Ratio for the fiscal year that ended in Dec. 2022 is calculated as
| Debt to Equity | = | Total Debt | / | Total Stockholders Equity | ||
| = | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Total Stockholders Equity | |
| = | (45.099 | + | 204.305) | / | 2565.326 | |
| = | 0.10 |
Palantir Technologies's Debt to Equity Ratio for the quarter that ended in Sep. 2023 is calculated as
| Debt to Equity | = | Total Debt | / | Total Stockholders Equity | ||
| = | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Total Stockholders Equity | |
| = | (52.204 | + | 184.067) | / | 3190.015 | |
| = | 0.07 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Palantir Technologies(NYSE:PLTR) Debt-to-Equity Explanation
In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.
Be Aware
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Palantir Technologies Debt-to-Equity Related Terms
Thank you for viewing the detailed overview of Palantir Technologies's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Palantir Technologies (NYSE:PLTR) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Technology » Software » Palantir Technologies Inc (NYSE:PLTR) » Definitions » Debt-to-Equity
Comparable Companies
Traded in Other Exchanges
Address
1200 17th Street, Floor 15, Denver, CO, USA, 80202
Website
Palantir is an analytical software company that focuses on leveraging data to create efficiencies in its clients' organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. The Denver-based company was founded in 2003 and went public in 2020.
Executives
| Heather A. Planishek | officer: See Remarks | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Eric H. Woersching | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Peter Thiel | director, 10 percent owner | 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069 |
| Stat Lauren Elaina Friedman | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Jeffrey Buckley | officer: Chief Accounting Officer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Spencer M Rascoff | director | 212 26TH STREET, UNIT 317, SANTA MONICA CA 90402 |
| Stephen Andrew Cohen | director, officer: President and Secretary | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Ryan D. Taylor | officer: See Remarks | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| David A. Glazer | officer: CFO and Treasurer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Alexander C. Karp | director, officer: Chief Executive Officer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Alexander D. Moore | director | C/O PALANTIR TECHNOLOGIES, INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Matthew A. Long | officer: General Counsel | C/O PALANTIR TECHNOLOGIES INC., 1555 BLAKE STREET, SUITE 250, DENVER CO 80202 |
| Alexandra W. Schiff | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Shyam Sankar | officer: Chief Operating Officer & EVP | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Sompo Holdings, Inc. | 10 percent owner | 26-1, NISHI-SHINJUKU 1-CHOME, SHINJUKU-KU, TOKYO M0 160-8338 |
Palantir Technologies (NYSE:PLTR) Headlines
As an expert with a demonstrable understanding of financial metrics and corporate finance, let's delve into the concepts used in the provided article about Palantir Technologies. My expertise lies in financial analysis, and I can provide insights into the significance of the company's debt-related metrics.
1. Short-Term Debt & Capital Lease Obligation:
- In the quarter ending Sep. 2023, Palantir Technologies reported a Short-Term Debt & Capital Lease Obligation of $52 million. This includes obligations that the company is expected to settle within the short term.
2. Long-Term Debt & Capital Lease Obligation:
- Palantir Technologies's Long-Term Debt & Capital Lease Obligation for the same quarter was $184 million. This represents the obligations expected to be settled over an extended period, usually beyond one year.
3. Total Stockholders Equity:
- The Total Stockholders Equity for the quarter ending Sep. 2023 was $3,190 million. This is the residual interest in the assets of the company after deducting liabilities. It represents shareholders' ownership in the company.
4. Debt to Equity Ratio:
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The Debt to Equity Ratio is a crucial financial metric calculated by dividing total debt (short-term and long-term) by total stockholders' equity. For Palantir Technologies in Sep. 2023, the ratio is 0.07, indicating a conservative financial structure.
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A low debt to equity ratio (0.07 in this case) suggests that the company has not been overly aggressive in financing its growth with debt. It is a positive sign as it indicates lower financial risk.
5. Historical Debt-to-Equity Trends:
- Palantir's Debt-to-Equity has fluctuated over the years. The historical trend shows that in Dec. 2018, the ratio was -0.20, indicating negative equity. However, as of Sep. 2023, it stands at 0.07, showcasing a positive equity position.
6. Industry and Competitive Comparison:
- Palantir's Debt-to-Equity ratio is compared to industry peers, and it is ranked better than 72.2% of 2234 companies in the Software industry. This suggests a relatively stronger financial position compared to its competitors.
7. Debt-to-Equity Calculation:
- The Debt to Equity Ratio is calculated as the sum of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. For Palantir in Sep. 2023, it is 0.07.
8. Importance of Debt-to-Equity Ratio:
- A crucial point emphasized in the article is that a high debt to equity ratio can lead to volatile earnings due to additional interest expenses. Monitoring this ratio is essential for investors, as high financial leverage can impact a company's risk profile.
In conclusion, Palantir Technologies, as of Sep. 2023, demonstrates a prudent financial strategy with a low Debt-to-Equity ratio, signaling a conservative approach to financing its operations and growth. This analysis provides valuable insights for investors and stakeholders assessing the company's financial health.
