Palantir Technologies Inc. Class A Common Stock (PLTR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	431,105	408,549	339,404	352,547
Payables	US$ in thousands	12,122	44,788	74,907	16,358
Payables turnover		35.56	9.12	4.53	21.55

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $431,105K ÷ $12,122K
= 35.56

Palantir Technologies Inc. Class A Common Stock's payables turnover ratio has exhibited significant fluctuation over the past four years, ranging from 4.53 to 35.56. The payables turnover ratio measures how efficiently the company is managing its accounts payable by indicating how many times during a period it pays off its suppliers.

In 2023, the payables turnover ratio surged to 35.56, indicating a substantial improvement in the efficiency of paying off suppliers compared to the previous year. This could be attributed to better inventory management, negotiation of favorable payment terms with suppliers, or enhanced cash flow management.

In contrast, 2022 recorded a lower payables turnover ratio of 9.12, suggesting that the company took longer to pay off its accounts payable compared to 2023. This could be indicative of a change in payment policies or a delay in supplier payments during that period.

The year 2021 witnessed a payables turnover ratio of 4.53, which indicates a slower rate of paying off suppliers compared to the previous year. This could potentially imply challenges in managing working capital efficiently or extended payment terms with suppliers.

Meanwhile, in 2020, the payables turnover ratio increased to 21.55, reflecting a more efficient management of accounts payable compared to 2021. This improvement may suggest effective cash flow management strategies or streamlined payment processes.

Overall, the fluctuations in Palantir Technologies Inc. Class A Common Stock's payables turnover ratio highlight variations in the company's ability to effectively manage its accounts payable and relationships with suppliers over the analyzed period.