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Palantir Technologies Financial Strength

: 8 (As of Jun. 2022)
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Palantir Technologies has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Palantir Technologies Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It 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.

Palantir Technologies did not have earnings to cover the interest expense. Palantir Technologies's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.14. As of today, Palantir Technologies's Altman Z-Score is 11.11.


Competitive Comparison

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 Financial Strength Distribution

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.



Palantir Technologies Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Palantir Technologies's Interest Expense for the months ended in Jun. 2022 was $-1 Mil. Its Operating Income for the months ended in Jun. 2022 was $-42 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $216 Mil.

Palantir Technologies's Interest Coverage for the quarter that ended in Jun. 2022 is

Palantir Technologies did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Palantir Technologies's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(40.909 + 216.059) / 1892.04
=0.14

3. Altman Z-Score.

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 11.11, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 11.11 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.


Palantir Technologies  (NYSE:PLTR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial 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 Technologies Business Description

Palantir Technologies logo
Traded in Other Exchanges
Address
1555 Blake Street, Suite 250, Denver, CO, USA, 80202
Palantir Technologies provides organizations with solutions to manage large disparate data sets in an attempt to gain insight and drive operational outcomes. Founded in 2003, Palantir released its Gotham software platform in 2008, which focuses on the government intelligence and defense sectors. Palantir expanded into various commercial markets with its Foundry software platform in 2016 with the intent of becoming the data operating system for companies and industries. The Denver company had 125 customers as of its initial public offering and roughly splits its revenue between commercial and government customers.
Executives
Woersching Eric H. director C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Thiel Peter director, 10 percent owner 9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069
Stat Lauren Elaina Friedman director C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Buckley Jeffrey officer: Chief Accounting Officer C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Rascoff Spencer M director 212 26TH STREET UNIT 317 SANTA MONICA CA 90402
Cohen Stephen Andrew director, officer: President and Secretary C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Taylor Ryan D. officer: See Remarks C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Glazer David A. officer: CFO and Treasurer C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Karp Alexander C. director, officer: Chief Executive Officer C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Moore Alexander D. director C/O PALANTIR TECHNOLOGIES, INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Long Matthew A. officer: General Counsel C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Schiff Alexandra W. director C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Sankar Shyam officer: Chief Operating Officer & EVP C/O PALANTIR TECHNOLOGIES INC. 1555 BLAKE STREET, SUITE 250 DENVER CO 80202
Sompo Holdings, Inc. 10 percent owner 26-1, NISHI-SHINJUKU 1-CHOME SHINJUKU-KU TOKYO M0 160-8338
Ho William officer: Controller C/O PALANTIR TECHNOLOGIES INC. 1255 BLAKE STREET, SUITE 250 DENVER CO 80202

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