GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Palantir Technologies's interest coverage with the available data.
Palantir Technologies's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.07.
As of today, Palantir Technologies's Altman Z-Score is 96.37.
Competitive Comparison of Palantir Technologies's Financial Strength
For the Software - Infrastructure subindustry, Palantir Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Software Industry
For the Software industry and Technology sector, Palantir Technologies's Financial Strength distribution charts can be found below:
* The bar in red indicates where Palantir Technologies's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Palantir Technologies's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Palantir Technologies Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Palantir Technologies's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Palantir Technologies has a Z-score of 96.37, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 96.37 is strong.
* 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.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Palantir Technologies has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Palantir Technologies Financial Strength Related Terms
Thank you for viewing the detailed overview of Palantir Technologies's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
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. Palantir works only with entities in Western-allied nations and reserves the right not to work with anyone that is antithetical to Western values. The Denver-based company was founded in 2003 and went public in 2020.
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