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Palantir Technologies (Palantir Technologies) Altman Z-Score

: 29.70 (As of Today)
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The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 28.78 is strong.

Palantir Technologies has a Altman Z-Score of 29.70, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Palantir Technologies's Altman Z-Score or its related term are showing as below:

PLTR' s Altman Z-Score Range Over the Past 10 Years
Min: 8.57   Med: 20.2   Max: 28.78
Current: 28.78

During the past 6 years, Palantir Technologies's highest Altman Z-Score was 28.78. The lowest was 8.57. And the median was 20.20.


Palantir Technologies Altman Z-Score Historical Data

The historical data trend for Palantir Technologies's Altman Z-Score 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 Dec23
Altman Z-Score
Get a 7-Day Free Trial - 18.81 21.59 8.57 23.39

Palantir Technologies Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.57 11.17 20.24 22.28 23.39

Competitive Comparison

For the Software - Infrastructure subindustry, Palantir Technologies's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Software industry and Technology sector, Palantir Technologies's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Palantir Technologies's Altman Z-Score falls into.



Palantir Technologies Altman Z-Score Calculation

Altman 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.

Palantir Technologies's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.7502+1.4*-1.2492+3.3*0.0532+0.6*49.8029+1.0*0.492
=29.70

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $4,522 Mil.
Total Current Assets was $4,139 Mil.
Total Current Liabilities was $746 Mil.
Retained Earnings was $-5,650 Mil.
Pre-Tax Income was 106.247 + 79.969 + 30.043 + 20.832 = $237 Mil.
Interest Expense was -0.136 + -0.742 + -1.317 + -1.275 = $-3 Mil.
Revenue was 608.35 + 558.159 + 533.317 + 525.186 = $2,225 Mil.
Market Cap (Today) was $47,884 Mil.
Total Liabilities was $961 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(4138.618 - 746.018)/4522.425
=0.7502

X2=Retained Earnings/Total Assets
=-5649.613/4522.425
=-1.2492

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(237.091 - -3.47)/4522.425
=0.0532

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=47883.542/961.46
=49.8029

X5=Revenue/Total Assets
=2225.012/4522.425
=0.492

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Palantir Technologies has a Altman Z-Score of 29.70 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Palantir Technologies  (NYSE:PLTR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Palantir Technologies Altman Z-Score Related Terms

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Palantir Technologies (Palantir Technologies) Business Description

Address
1200 17th Street, Floor 15, Denver, CO, USA, 80202
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
Alexandra W. Schiff director 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
Stat Lauren Elaina Friedman director C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202
Heather A. Planishek officer: See Remarks C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202
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
Shyam Sankar officer: Chief Operating Officer & EVP 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
Eric H. Woersching 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
Peter Thiel director, 10 percent owner 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069
Matthew A. Long officer: General Counsel 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