Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Palantir Technologies Inc., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The solvency position, as indicated by the presented metrics, demonstrates a strengthening financial structure over the analyzed period. A consistent decline is observed in debt-related ratios, while coverage ratios exhibit substantial improvement. This suggests a decreasing reliance on debt financing and an increasing ability to meet financial obligations.
- Debt Levels
- Debt to equity, debt to capital, and debt to assets, inclusive of operating lease liabilities, all show a decreasing trend from 2022 through 2025. The debt to equity ratio decreased from 0.11 in 2022 to 0.03 in 2025. Similarly, debt to capital decreased from 0.10 to 0.03 over the same period, and debt to assets decreased from 0.08 to 0.03. This indicates a reduction in the proportion of debt financing relative to equity, capital, and total assets.
- Financial Leverage
- Financial leverage, while decreasing, exhibits a more gradual decline, moving from 1.42 in 2021 to 1.20 in 2025. This suggests a moderated use of debt to amplify returns, aligning with the observed reduction in debt ratios.
- Coverage Ratios
- A significant turnaround is evident in the coverage ratios. Interest coverage transitioned from negative values in 2021 and 2022 (-133.20 and -87.97 respectively) to a positive value of 69.33 in 2023, and is not available for 2024. Fixed charge coverage followed a similar pattern, moving from negative figures (-7.89 and -5.06) to positive values, culminating in 29.99 in 2025. The substantial improvement in these ratios indicates a growing capacity to cover interest and fixed charges with earnings before interest and taxes.
Overall, the trends suggest a strengthening solvency position characterized by decreasing debt levels and improving coverage ratios. The transition from negative to positive coverage ratios is particularly noteworthy, signaling a substantial improvement in the ability to service debt obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Palantir Technologies Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total Palantir’s stockholders’ equity | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.17 | 0.04 | 0.01 | 0.00 | 0.00 | |
| Adobe Inc. | 0.53 | 0.40 | 0.22 | 0.29 | 0.28 | |
| AppLovin Corp. | 1.70 | 3.36 | 2.61 | 1.72 | 1.53 | |
| Cadence Design Systems Inc. | — | 0.53 | 0.19 | 0.27 | 0.13 | |
| CrowdStrike Holdings Inc. | 0.23 | 0.32 | 0.51 | 0.72 | 0.85 | |
| Datadog Inc. | — | 0.59 | 0.37 | 0.52 | 0.71 | |
| International Business Machines Corp. | 1.88 | 2.01 | 2.51 | 2.32 | 2.74 | |
| Intuit Inc. | 0.30 | 0.33 | 0.35 | 0.42 | 0.21 | |
| Microsoft Corp. | 0.26 | 0.29 | 0.31 | 0.39 | 0.50 | |
| Oracle Corp. | 4.67 | 9.98 | 84.33 | — | 16.08 | |
| Palo Alto Networks Inc. | 0.00 | 0.19 | 1.14 | 17.51 | 5.08 | |
| Salesforce Inc. | 0.15 | 0.17 | 0.20 | 0.19 | 0.07 | |
| ServiceNow Inc. | 0.12 | 0.15 | 0.20 | 0.30 | 0.43 | |
| Synopsys Inc. | 0.48 | 0.00 | 0.00 | 0.00 | 0.02 | |
| Workday Inc. | 0.33 | 0.37 | 0.53 | 0.41 | 0.55 | |
| Debt to Equity, Sector | ||||||
| Software & Services | — | 0.55 | 0.64 | 0.71 | 0.83 | |
| Debt to Equity, Industry | ||||||
| Information Technology | — | 0.61 | 0.66 | 0.71 | 0.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Total Palantir’s stockholders’ equity
= 0 ÷ 7,387,268 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a consistent increase in total stockholders’ equity between December 31, 2021, and December 31, 2025. However, information regarding total debt is absent, precluding a complete assessment of the debt-to-equity ratio over the observed period.
- Stockholders’ Equity Trend
- Total stockholders’ equity increased from US$2,291,030 thousand in 2021 to US$2,565,326 thousand in 2022, representing a growth of approximately 11.96%. This upward trajectory continued with increases to US$3,475,561 thousand in 2023, US$5,003,275 thousand in 2024, and ultimately reaching US$7,387,268 thousand in 2025. The growth from 2024 to 2025 is particularly notable, showing a substantial increase of approximately 47.58%.
Without corresponding debt figures, it is impossible to determine the company’s leverage or assess the risk associated with its capital structure. The absence of debt values for each period limits the ability to draw conclusions regarding the company’s financial risk profile and its reliance on debt financing. A comprehensive solvency analysis requires complete information for both debt and equity components.
- Debt-to-Equity Ratio
- The debt-to-equity ratio remains undefined for all periods due to the lack of total debt information. Consequently, no trends or observations can be made regarding the company’s financial leverage or its ability to meet its long-term obligations. The ratio’s absence prevents any evaluation of how effectively the company is financing its operations and growth.
Further investigation is needed to obtain the total debt figures for each year to enable a meaningful analysis of the debt-to-equity ratio and a complete understanding of the company’s solvency position.
Debt to Equity (including Operating Lease Liability)
Palantir Technologies Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 45,864) | 43,993) | 54,176) | 45,099) | 39,927) | |
| Operating lease liabilities, noncurrent | 183,474) | 195,226) | 175,216) | 204,305) | 220,146) | |
| Total debt (including operating lease liability) | 229,338) | 239,219) | 229,392) | 249,404) | 260,073) | |
| Total Palantir’s stockholders’ equity | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.03 | 0.05 | 0.07 | 0.10 | 0.11 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.26 | 0.15 | 0.12 | 0.15 | 0.18 | |
| Adobe Inc. | 0.57 | 0.43 | 0.25 | 0.33 | 0.32 | |
| AppLovin Corp. | 1.72 | 3.41 | 2.66 | 1.76 | 1.57 | |
| Cadence Design Systems Inc. | — | 0.56 | 0.24 | 0.34 | 0.18 | |
| CrowdStrike Holdings Inc. | 0.24 | 0.34 | 0.54 | 0.76 | 0.89 | |
| Datadog Inc. | — | 0.68 | 0.45 | 0.59 | 0.78 | |
| International Business Machines Corp. | 1.98 | 2.14 | 2.66 | 2.46 | 2.92 | |
| Intuit Inc. | 0.34 | 0.36 | 0.39 | 0.46 | 0.25 | |
| Microsoft Corp. | 0.33 | 0.36 | 0.39 | 0.47 | 0.58 | |
| Oracle Corp. | 5.33 | 10.85 | 88.84 | — | 16.61 | |
| Palo Alto Networks Inc. | 0.05 | 0.27 | 1.33 | 19.12 | 5.68 | |
| Salesforce Inc. | 0.20 | 0.23 | 0.25 | 0.25 | 0.15 | |
| ServiceNow Inc. | 0.19 | 0.24 | 0.30 | 0.44 | 0.60 | |
| Synopsys Inc. | 0.50 | 0.08 | 0.11 | 0.12 | 0.13 | |
| Workday Inc. | 0.37 | 0.41 | 0.58 | 0.46 | 0.68 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | — | 0.63 | 0.73 | 0.81 | 0.93 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | — | 0.67 | 0.72 | 0.77 | 0.91 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Palantir’s stockholders’ equity
= 229,338 ÷ 7,387,268 = 0.03
2 Click competitor name to see calculations.
The information presents a consistent decline in the debt to equity ratio over the five-year period from December 31, 2021, to December 31, 2025. This indicates a strengthening of the company’s financial position with respect to its leverage.
- Debt to Equity Ratio Trend
- The debt to equity ratio decreased steadily from 0.11 in 2021 to 0.03 in 2025. This represents a significant reduction in the proportion of debt financing relative to equity financing.
Total debt, including operating lease liability, experienced a moderate decrease from US$260,073 thousand in 2021 to US$229,338 thousand in 2025. While there were minor fluctuations, the overall trend is downward.
- Total Debt
- The highest level of total debt was observed in 2021. A slight increase occurred in 2024 before decreasing again in 2025, suggesting potential strategic debt management or investment cycles.
Total stockholders’ equity demonstrated substantial growth throughout the period, increasing from US$2,291,030 thousand in 2021 to US$7,387,268 thousand in 2025. This growth significantly outpaced any changes in total debt, driving the observed decline in the debt to equity ratio.
- Total Stockholders’ Equity
- The most substantial increase in equity occurred between 2023 and 2025, indicating a period of strong earnings retention or capital raising activities. This growth is a primary driver of the improving solvency position.
The consistent decrease in the debt to equity ratio, coupled with the growth in stockholders’ equity, suggests a decreasing reliance on debt financing and an improving capacity to meet long-term obligations. This trend generally indicates reduced financial risk.
Debt to Capital
Palantir Technologies Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total Palantir’s stockholders’ equity | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Total capital | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.14 | 0.03 | 0.01 | 0.00 | 0.00 | |
| Adobe Inc. | 0.35 | 0.29 | 0.18 | 0.23 | 0.22 | |
| AppLovin Corp. | 0.63 | 0.77 | 0.72 | 0.63 | 0.60 | |
| Cadence Design Systems Inc. | — | 0.35 | 0.16 | 0.21 | 0.11 | |
| CrowdStrike Holdings Inc. | 0.18 | 0.24 | 0.34 | 0.42 | 0.46 | |
| Datadog Inc. | — | 0.37 | 0.27 | 0.34 | 0.41 | |
| International Business Machines Corp. | 0.65 | 0.67 | 0.72 | 0.70 | 0.73 | |
| Intuit Inc. | 0.23 | 0.25 | 0.26 | 0.30 | 0.17 | |
| Microsoft Corp. | 0.21 | 0.23 | 0.24 | 0.28 | 0.33 | |
| Oracle Corp. | 0.82 | 0.91 | 0.99 | 1.09 | 0.94 | |
| Palo Alto Networks Inc. | 0.00 | 0.16 | 0.53 | 0.95 | 0.84 | |
| Salesforce Inc. | 0.13 | 0.15 | 0.16 | 0.16 | 0.06 | |
| ServiceNow Inc. | 0.10 | 0.13 | 0.16 | 0.23 | 0.30 | |
| Synopsys Inc. | 0.32 | 0.00 | 0.00 | 0.00 | 0.02 | |
| Workday Inc. | 0.25 | 0.27 | 0.35 | 0.29 | 0.35 | |
| Debt to Capital, Sector | ||||||
| Software & Services | — | 0.35 | 0.39 | 0.42 | 0.45 | |
| Debt to Capital, Industry | ||||||
| Information Technology | — | 0.38 | 0.40 | 0.41 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 7,387,268 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a consistent upward trend in total capital between December 31, 2021, and December 31, 2025. However, information regarding total debt is absent for all periods, preventing a complete assessment of the debt-to-capital ratio.
- Total Capital
- Total capital increased from US$2,291,030 thousand in 2021 to US$7,387,268 thousand in 2025. This represents a substantial growth rate over the five-year period. The increase from 2021 to 2022 was approximately 11.96%, from 2022 to 2023 approximately 35.48%, from 2023 to 2024 approximately 44.28%, and from 2024 to 2025 approximately 47.56%. The rate of increase in total capital appears to be accelerating.
- Debt to Capital Ratio
- The debt-to-capital ratio is not calculable for any of the reported years due to the absence of total debt figures. Without this information, it is impossible to determine the company’s financial leverage or its ability to meet its long-term obligations. The trend in this ratio cannot be assessed.
In conclusion, while a clear pattern of growth in total capital is evident, the lack of corresponding debt figures limits the ability to draw meaningful conclusions about the company’s solvency position. Further investigation into total debt levels is necessary for a comprehensive solvency analysis.
Debt to Capital (including Operating Lease Liability)
Palantir Technologies Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 45,864) | 43,993) | 54,176) | 45,099) | 39,927) | |
| Operating lease liabilities, noncurrent | 183,474) | 195,226) | 175,216) | 204,305) | 220,146) | |
| Total debt (including operating lease liability) | 229,338) | 239,219) | 229,392) | 249,404) | 260,073) | |
| Total Palantir’s stockholders’ equity | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Total capital (including operating lease liability) | 7,616,606) | 5,242,494) | 3,704,953) | 2,814,730) | 2,551,103) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.03 | 0.05 | 0.06 | 0.09 | 0.10 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.21 | 0.13 | 0.11 | 0.13 | 0.15 | |
| Adobe Inc. | 0.36 | 0.30 | 0.20 | 0.25 | 0.24 | |
| AppLovin Corp. | 0.63 | 0.77 | 0.73 | 0.64 | 0.61 | |
| Cadence Design Systems Inc. | — | 0.36 | 0.19 | 0.25 | 0.15 | |
| CrowdStrike Holdings Inc. | 0.19 | 0.26 | 0.35 | 0.43 | 0.47 | |
| Datadog Inc. | — | 0.40 | 0.31 | 0.37 | 0.44 | |
| International Business Machines Corp. | 0.66 | 0.68 | 0.73 | 0.71 | 0.74 | |
| Intuit Inc. | 0.25 | 0.26 | 0.28 | 0.31 | 0.20 | |
| Microsoft Corp. | 0.25 | 0.27 | 0.28 | 0.32 | 0.37 | |
| Oracle Corp. | 0.84 | 0.92 | 0.99 | 1.08 | 0.94 | |
| Palo Alto Networks Inc. | 0.05 | 0.21 | 0.57 | 0.95 | 0.85 | |
| Salesforce Inc. | 0.16 | 0.19 | 0.20 | 0.20 | 0.13 | |
| ServiceNow Inc. | 0.16 | 0.19 | 0.23 | 0.31 | 0.37 | |
| Synopsys Inc. | 0.34 | 0.07 | 0.10 | 0.11 | 0.11 | |
| Workday Inc. | 0.27 | 0.29 | 0.37 | 0.32 | 0.41 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | — | 0.39 | 0.42 | 0.45 | 0.48 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | — | 0.40 | 0.42 | 0.44 | 0.48 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 229,338 ÷ 7,616,606 = 0.03
2 Click competitor name to see calculations.
The information presents a consistent decline in the debt to capital ratio over the five-year period examined. Total debt, inclusive of operating lease liabilities, exhibits a generally decreasing trend, while total capital, also including operating lease liabilities, demonstrates substantial growth. This combination results in a progressively improving solvency position as indicated by the ratio.
- Debt to Capital Ratio Trend
- The debt to capital ratio decreased steadily from 0.10 in 2021 to 0.03 in 2025. This signifies a diminishing reliance on debt financing relative to the company’s overall capital structure. The most significant reduction occurred between 2023 and 2025, coinciding with a period of accelerated capital growth.
- Total Debt
- Total debt decreased from US$260,073 thousand in 2021 to US$229,338 thousand in 2025. While there was a slight increase reported in 2024, the overall trend indicates a successful effort to manage and reduce debt obligations.
- Total Capital
- Total capital experienced considerable growth, increasing from US$2,551,103 thousand in 2021 to US$7,616,606 thousand in 2025. This expansion in capital base significantly outpaced the changes in total debt, contributing to the observed decline in the debt to capital ratio. The largest increases in total capital were observed between 2023 and 2025.
The observed trends suggest a strengthening financial position with a decreasing level of financial risk associated with debt. The company appears to be effectively increasing its capital base while concurrently managing its debt levels.
Debt to Assets
Palantir Technologies Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total assets | 8,900,392) | 6,340,884) | 4,522,425) | 3,461,239) | 3,247,450) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.08 | 0.02 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.21 | 0.19 | 0.12 | 0.15 | 0.15 | |
| AppLovin Corp. | 0.50 | 0.62 | 0.61 | 0.56 | 0.53 | |
| Cadence Design Systems Inc. | — | 0.28 | 0.11 | 0.15 | 0.08 | |
| CrowdStrike Holdings Inc. | 0.09 | 0.11 | 0.15 | 0.20 | 0.27 | |
| Datadog Inc. | — | 0.28 | 0.19 | 0.25 | 0.31 | |
| International Business Machines Corp. | 0.40 | 0.40 | 0.42 | 0.40 | 0.39 | |
| Intuit Inc. | 0.16 | 0.19 | 0.22 | 0.25 | 0.13 | |
| Microsoft Corp. | 0.14 | 0.15 | 0.16 | 0.18 | 0.21 | |
| Oracle Corp. | 0.57 | 0.62 | 0.67 | 0.69 | 0.64 | |
| Palo Alto Networks Inc. | 0.00 | 0.05 | 0.14 | 0.30 | 0.31 | |
| Salesforce Inc. | 0.09 | 0.10 | 0.12 | 0.12 | 0.04 | |
| ServiceNow Inc. | 0.06 | 0.07 | 0.09 | 0.11 | 0.15 | |
| Synopsys Inc. | 0.28 | 0.00 | 0.00 | 0.00 | 0.01 | |
| Workday Inc. | 0.17 | 0.18 | 0.22 | 0.18 | 0.21 | |
| Debt to Assets, Sector | ||||||
| Software & Services | — | 0.23 | 0.25 | 0.26 | 0.28 | |
| Debt to Assets, Industry | ||||||
| Information Technology | — | 0.25 | 0.26 | 0.26 | 0.29 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 8,900,392 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a consistent upward trajectory in total assets from December 31, 2021, through December 31, 2025. However, the corresponding values for total debt are unavailable, precluding a complete assessment of the debt-to-assets ratio over the entire period. Consequently, the analysis focuses solely on the observed asset growth and the implications of missing debt information.
- Total Assets Trend
- Total assets increased from US$3,247,450 thousand in 2021 to US$3,461,239 thousand in 2022, representing a growth of approximately 6.6%. This growth accelerated in subsequent years, with assets reaching US$4,522,425 thousand in 2023, US$6,340,884 thousand in 2024, and culminating in US$8,900,392 thousand in 2025. The most substantial year-over-year increase occurred between 2024 and 2025, indicating a potentially significant expansion of the company’s resource base.
The absence of total debt figures for all periods prevents the calculation and analysis of the debt-to-assets ratio. Without this information, it is impossible to determine the extent to which asset growth is financed by debt or equity. A comprehensive solvency assessment requires the inclusion of debt values to understand the company’s financial leverage and its ability to meet its long-term obligations. The lack of debt information limits the ability to assess potential financial risk associated with the observed asset expansion.
- Implications of Missing Data
- The inability to calculate the debt-to-assets ratio hinders a complete understanding of the company’s financial health. A rising debt-to-assets ratio generally indicates increased financial risk, while a declining ratio suggests improved solvency. The current situation necessitates obtaining the missing debt figures to perform a meaningful solvency analysis.
Further investigation is required to ascertain the company’s debt levels and their impact on its overall financial position. A complete solvency analysis, incorporating both debt and asset information, is crucial for a thorough evaluation of the company’s long-term financial stability.
Debt to Assets (including Operating Lease Liability)
Palantir Technologies Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 45,864) | 43,993) | 54,176) | 45,099) | 39,927) | |
| Operating lease liabilities, noncurrent | 183,474) | 195,226) | 175,216) | 204,305) | 220,146) | |
| Total debt (including operating lease liability) | 229,338) | 239,219) | 229,392) | 249,404) | 260,073) | |
| Total assets | 8,900,392) | 6,340,884) | 4,522,425) | 3,461,239) | 3,247,450) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.03 | 0.04 | 0.05 | 0.07 | 0.08 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.13 | 0.07 | 0.06 | 0.07 | 0.08 | |
| Adobe Inc. | 0.23 | 0.20 | 0.14 | 0.17 | 0.17 | |
| AppLovin Corp. | 0.51 | 0.63 | 0.62 | 0.57 | 0.54 | |
| Cadence Design Systems Inc. | — | 0.29 | 0.14 | 0.18 | 0.11 | |
| CrowdStrike Holdings Inc. | 0.09 | 0.12 | 0.16 | 0.21 | 0.29 | |
| Datadog Inc. | — | 0.32 | 0.23 | 0.28 | 0.34 | |
| International Business Machines Corp. | 0.43 | 0.43 | 0.44 | 0.42 | 0.42 | |
| Intuit Inc. | 0.18 | 0.20 | 0.24 | 0.27 | 0.16 | |
| Microsoft Corp. | 0.18 | 0.19 | 0.19 | 0.21 | 0.25 | |
| Oracle Corp. | 0.65 | 0.67 | 0.71 | 0.73 | 0.66 | |
| Palo Alto Networks Inc. | 0.02 | 0.07 | 0.16 | 0.33 | 0.35 | |
| Salesforce Inc. | 0.12 | 0.14 | 0.15 | 0.15 | 0.10 | |
| ServiceNow Inc. | 0.09 | 0.11 | 0.13 | 0.17 | 0.21 | |
| Synopsys Inc. | 0.30 | 0.05 | 0.07 | 0.07 | 0.08 | |
| Workday Inc. | 0.19 | 0.20 | 0.24 | 0.20 | 0.26 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | — | 0.27 | 0.29 | 0.30 | 0.32 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | — | 0.27 | 0.28 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 229,338 ÷ 8,900,392 = 0.03
2 Click competitor name to see calculations.
The relationship between total debt, including operating lease liabilities, and total assets demonstrates a consistent decline over the five-year period. This indicates a strengthening solvency position.
- Debt to Assets Ratio
- The debt to assets ratio exhibits a clear downward trend, decreasing from 0.08 in 2021 to 0.03 in 2025. This signifies a decreasing proportion of assets financed by debt.
- The most significant reduction occurred between 2022 and 2023, with a decrease from 0.07 to 0.05. Further declines, though less pronounced, were observed in subsequent years.
- While total debt experienced minor fluctuations, the substantial growth in total assets was the primary driver of this decreasing ratio. Total assets increased significantly from US$3,247,450 thousand in 2021 to US$8,900,392 thousand in 2025.
The observed trend suggests the company is relying less on debt financing relative to its asset base, potentially indicating improved financial flexibility and reduced financial risk. The consistent decline in the ratio warrants further investigation into the sources of asset growth and the company’s overall capital structure strategy.
Financial Leverage
Palantir Technologies Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 8,900,392) | 6,340,884) | 4,522,425) | 3,461,239) | 3,247,450) | |
| Total Palantir’s stockholders’ equity | 7,387,268) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.20 | 1.27 | 1.30 | 1.35 | 1.42 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 2.10 | 1.98 | 1.99 | 2.14 | 2.21 | |
| Adobe Inc. | 2.54 | 2.14 | 1.80 | 1.93 | 1.84 | |
| AppLovin Corp. | 3.40 | 5.39 | 4.27 | 3.07 | 2.88 | |
| Cadence Design Systems Inc. | — | 1.92 | 1.67 | 1.87 | 1.60 | |
| CrowdStrike Holdings Inc. | 2.65 | 2.88 | 3.43 | 3.53 | 3.14 | |
| Datadog Inc. | — | 2.13 | 1.94 | 2.13 | 2.29 | |
| International Business Machines Corp. | 4.65 | 5.02 | 6.00 | 5.80 | 6.98 | |
| Intuit Inc. | 1.88 | 1.74 | 1.61 | 1.69 | 1.57 | |
| Microsoft Corp. | 1.80 | 1.91 | 2.00 | 2.19 | 2.35 | |
| Oracle Corp. | 8.23 | 16.20 | 125.24 | — | 25.03 | |
| Palo Alto Networks Inc. | 3.01 | 3.87 | 8.29 | 58.35 | 16.14 | |
| Salesforce Inc. | 1.68 | 1.67 | 1.69 | 1.64 | 1.60 | |
| ServiceNow Inc. | 2.01 | 2.12 | 2.28 | 2.64 | 2.92 | |
| Synopsys Inc. | 1.70 | 1.45 | 1.68 | 1.71 | 1.65 | |
| Workday Inc. | 1.99 | 2.04 | 2.41 | 2.31 | 2.66 | |
| Financial Leverage, Sector | ||||||
| Software & Services | — | 2.35 | 2.55 | 2.72 | 2.95 | |
| Financial Leverage, Industry | ||||||
| Information Technology | — | 2.46 | 2.55 | 2.68 | 2.89 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Total Palantir’s stockholders’ equity
= 8,900,392 ÷ 7,387,268 = 1.20
2 Click competitor name to see calculations.
An analysis of the provided financial information reveals a consistent trend in the company’s financial leverage over the five-year period from December 31, 2021, to December 31, 2025. Total assets and total stockholders’ equity both demonstrate growth throughout the period, but the rate of growth in equity appears to be outpacing that of assets, resulting in a decreasing leverage ratio.
- Financial Leverage
- The financial leverage ratio decreased steadily from 1.42 in 2021 to 1.20 in 2025. This indicates a diminishing reliance on debt financing relative to equity. The initial value of 1.42 suggests that for every dollar of equity, the company held $0.42 in debt. By 2025, this had reduced to $0.20 in debt for every dollar of equity.
The consistent decline in financial leverage suggests improved financial stability and a reduced risk profile. This trend could be attributed to increased profitability leading to greater retained earnings, successful equity offerings, or a deliberate strategy to reduce debt. The growth in total stockholders’ equity, from US$2,291,030 thousand in 2021 to US$7,387,268 thousand in 2025, supports the notion of increasing equity contributing to the lower leverage.
- Asset and Equity Growth
- Total assets increased from US$3,247,450 thousand in 2021 to US$8,900,392 thousand in 2025, representing substantial growth. However, total stockholders’ equity experienced a more significant percentage increase over the same period. This differential growth rate is a primary driver of the observed decrease in financial leverage.
The observed trend in financial leverage is generally positive, indicating a strengthening financial position. Continued monitoring of this ratio, alongside other solvency and profitability metrics, is recommended to ensure sustained financial health.
Interest Coverage
Palantir Technologies Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to common stockholders | 1,625,033) | 462,190) | 209,825) | (373,705) | (520,379) | |
| Add: Net income attributable to noncontrolling interest | 9,611) | 5,728) | 7,550) | 2,611) | —) | |
| Add: Income tax expense | 22,724) | 21,255) | 19,716) | 10,067) | 31,885) | |
| Add: Interest expense | —) | —) | 3,470) | 4,058) | 3,640) | |
| Earnings before interest and tax (EBIT) | 1,657,368) | 489,173) | 240,561) | (356,969) | (484,854) | |
| Solvency Ratio | ||||||
| Interest coverage1 | — | — | 69.33 | -87.97 | -133.20 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 45.94 | 165.48 | 193.31 | 195.34 | 131.46 | |
| Adobe Inc. | 34.21 | 42.01 | 61.17 | 54.64 | 51.49 | |
| AppLovin Corp. | 20.09 | 5.95 | 2.38 | -0.19 | 1.45 | |
| Cadence Design Systems Inc. | — | 19.37 | 36.43 | 46.58 | 46.26 | |
| CrowdStrike Holdings Inc. | 3.07 | 5.77 | -5.31 | -5.34 | -55.36 | |
| Datadog Inc. | — | 29.85 | 10.56 | -1.30 | 0.12 | |
| International Business Machines Corp. | 6.35 | 4.40 | 6.42 | 1.97 | 5.20 | |
| Intuit Inc. | 20.57 | 15.67 | 13.05 | 32.38 | 89.14 | |
| Microsoft Corp. | 52.84 | 37.72 | 46.38 | 41.58 | 31.31 | |
| Oracle Corp. | 5.01 | 4.39 | 3.65 | 3.84 | 6.28 | |
| Palo Alto Networks Inc. | 532.90 | 120.07 | 21.82 | -6.56 | -1.85 | |
| Salesforce Inc. | 28.35 | 18.49 | 3.20 | 7.93 | 21.49 | |
| ServiceNow Inc. | 99.30 | 76.57 | 43.00 | 15.78 | 9.89 | |
| Synopsys Inc. | 4.12 | 44.06 | 1,106.08 | 657.96 | 240.38 | |
| Workday Inc. | 6.60 | 4.12 | -1.54 | 1.97 | -3.00 | |
| Interest Coverage, Sector | ||||||
| Software & Services | — | 17.70 | 16.84 | 17.69 | 17.08 | |
| Interest Coverage, Industry | ||||||
| Information Technology | — | 19.41 | 17.52 | 22.44 | 19.79 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,657,368 ÷ 0 = —
2 Click competitor name to see calculations.
The interest coverage ratio demonstrates a significant improvement over the observed period. Initially negative, the ratio transitions to positive values, indicating a strengthening ability to meet interest obligations from earnings.
- Earnings Before Interest and Tax (EBIT)
- EBIT was negative in both 2021 and 2022, reported as -484,854 and -356,969 thousand US dollars respectively. A substantial positive shift occurred in 2023, with EBIT reaching 240,561 thousand US dollars. This positive trend continued through 2024 and 2025, with EBIT increasing to 489,173 and 1,657,368 thousand US dollars, respectively. This growth in earnings is a primary driver of the observed changes in interest coverage.
- Interest Expense
- Interest expense remained relatively stable between 2021 and 2023, fluctuating between 3,470 and 4,058 thousand US dollars. Values for 2024 and 2025 are not available for analysis.
- Interest Coverage Ratio
- The interest coverage ratio was negative in 2021 and 2022, at -133.20 and -87.97 respectively, reflecting the negative EBIT during those years. In 2023, the ratio became positive at 69.33, signifying that earnings before interest and tax were sufficient to cover interest expense by approximately 69 times. Values for 2024 and 2025 are not available, preventing a complete assessment of the trend. The substantial increase from negative values to a positive value of 69.33 indicates a considerable improvement in the company’s ability to service its debt.
The progression from negative to positive interest coverage is noteworthy. The increasing EBIT, coupled with relatively stable interest expense, has driven this improvement. The absence of values for the interest coverage ratio in 2024 and 2025 limits the ability to determine if this positive trend continues.
Fixed Charge Coverage
Palantir Technologies Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to common stockholders | 1,625,033) | 462,190) | 209,825) | (373,705) | (520,379) | |
| Add: Net income attributable to noncontrolling interest | 9,611) | 5,728) | 7,550) | 2,611) | —) | |
| Add: Income tax expense | 22,724) | 21,255) | 19,716) | 10,067) | 31,885) | |
| Add: Interest expense | —) | —) | 3,470) | 4,058) | 3,640) | |
| Earnings before interest and tax (EBIT) | 1,657,368) | 489,173) | 240,561) | (356,969) | (484,854) | |
| Add: Operating lease expense | 57,164) | 57,655) | 61,972) | 55,483) | 51,330) | |
| Earnings before fixed charges and tax | 1,714,532) | 546,828) | 302,533) | (301,486) | (433,524) | |
| Interest expense | —) | —) | 3,470) | 4,058) | 3,640) | |
| Operating lease expense | 57,164) | 57,655) | 61,972) | 55,483) | 51,330) | |
| Fixed charges | 57,164) | 57,655) | 65,442) | 59,541) | 54,970) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 29.99 | 9.48 | 4.62 | -5.06 | -7.89 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 11.72 | 13.46 | 10.98 | 12.25 | 10.41 | |
| Adobe Inc. | 25.40 | 26.20 | 30.56 | 26.79 | 25.59 | |
| AppLovin Corp. | 18.93 | 5.73 | 2.30 | -0.07 | 1.35 | |
| Cadence Design Systems Inc. | — | 11.13 | 14.79 | 15.50 | 13.77 | |
| CrowdStrike Holdings Inc. | 2.25 | 3.98 | -3.39 | -3.39 | -6.40 | |
| Datadog Inc. | — | 5.09 | 2.47 | 0.09 | 0.55 | |
| International Business Machines Corp. | 4.50 | 3.13 | 4.32 | 1.52 | 3.13 | |
| Intuit Inc. | 14.50 | 11.14 | 9.03 | 14.67 | 25.58 | |
| Microsoft Corp. | 16.63 | 17.61 | 19.44 | 19.50 | 16.90 | |
| Oracle Corp. | 3.71 | 3.55 | 3.12 | 3.22 | 5.17 | |
| Palo Alto Networks Inc. | 18.52 | 12.78 | 7.20 | -1.18 | -1.09 | |
| Salesforce Inc. | 8.78 | 4.74 | 1.51 | 2.18 | 2.92 | |
| ServiceNow Inc. | 14.30 | 12.36 | 7.59 | 3.87 | 2.95 | |
| Synopsys Inc. | 3.47 | 12.88 | 14.38 | 12.91 | 9.29 | |
| Workday Inc. | 3.69 | 2.60 | -0.29 | 1.15 | -0.69 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | — | 9.92 | 9.35 | 9.29 | 9.13 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | — | 12.38 | 11.26 | 13.34 | 12.15 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,714,532 ÷ 57,164 = 29.99
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited a significant improvement over the observed period. Initially negative, the ratio transitioned to positive values and demonstrated increasing strength through the end of the analyzed timeframe.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax were negative in 2021 and 2022, registering at -433,524 thousand US dollars and -301,486 thousand US dollars respectively. A substantial positive shift occurred in 2023, with earnings reaching 302,533 thousand US dollars. This positive trend continued, accelerating to 546,828 thousand US dollars in 2024 and further increasing to 1,714,532 thousand US dollars in 2025.
- Fixed Charges
- Fixed charges remained relatively stable between 2021 and 2023, fluctuating from 54,970 thousand US dollars to 65,442 thousand US dollars. A decrease was observed in 2024, with fixed charges falling to 57,655 thousand US dollars, and this trend continued slightly into 2025, with fixed charges at 57,164 thousand US dollars. The fluctuations were comparatively small relative to the changes in earnings before fixed charges and tax.
- Fixed Charge Coverage
- The fixed charge coverage ratio was negative in both 2021 and 2022, at -7.89 and -5.06 respectively, reflecting the negative earnings before fixed charges and tax during those periods. A positive value of 4.62 was recorded in 2023, indicating the company’s ability to cover its fixed charges with its earnings. This coverage strengthened considerably in subsequent years, reaching 9.48 in 2024 and a substantial 29.99 in 2025. This demonstrates a rapidly improving capacity to meet fixed financial obligations.
The progression from negative to significantly positive fixed charge coverage suggests a substantial improvement in the company’s financial health and its ability to service its fixed obligations. The increasing earnings before fixed charges and tax, coupled with relatively stable fixed charges, drove this positive trend.