Palantir Technologies Inc. Class A Common Stock (PLTR)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cost of revenue (ttm)	US$ in thousands	500,096	461,379	439,716	431,105	426,777	426,466	421,791	408,549	391,801	370,994	359,696	339,404	322,344	384,880
Payables	US$ in thousands	27,021	67,345	35,634	12,122	9,475	4,613	4,530	44,788	59,507	56,798	27,454	74,907	17,654	30,914	17,234	16,358	22,221
Payables turnover		18.51	6.85	12.34	35.56	45.04	92.45	93.11	9.12	6.58	6.53	13.10	4.53	18.26	12.45

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $500,096K ÷ $27,021K
= 18.51

Palantir Technologies Inc.'s payables turnover ratio has fluctuated significantly over the past several quarters. The payables turnover ratio measures how efficiently the company is managing its trade payables by comparing the cost of goods sold to average accounts payable.

The latest payables turnover ratio for September 30, 2024, was 18.51, reflecting a substantial increase from the previous quarter's ratio of 6.85. This surge indicates that the company was able to convert its accounts payable into cash or inventory almost 19 times during the period, suggesting effective management of its supplier obligations.

The trend in Palantir's payables turnover ratio has been quite volatile, with peaks and troughs occurring in different quarters. For example, the ratio hit a high of 93.11 in the first quarter of 2023 before dropping to 4.53 in the fourth quarter of 2021. These fluctuations may indicate varying levels of operational efficiency and procurement strategies impacting the payment cycles with suppliers.

Overall, a high payables turnover ratio can suggest that the company is efficiently managing its payables, negotiating favorable credit terms with suppliers, or promptly paying off outstanding obligations. On the other hand, a low ratio may signal potential liquidity issues or inefficiencies in managing supplier relationships.

It would be important to track the payables turnover ratio over time and compare it to industry benchmarks to gain a better understanding of Palantir's working capital management and supplier relationships.