Palantir Technologies Inc. Class A Common Stock (PLTR)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,865,510	2,225,010	1,905,870	1,541,890	1,092,670
Total assets	US$ in thousands	6,340,880	4,522,420	3,461,240	3,247,450	2,690,500
Total asset turnover		0.45	0.49	0.55	0.47	0.41

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,865,510K ÷ $6,340,880K
= 0.45

The total asset turnover ratio for Palantir Technologies Inc. Class A Common Stock has shown fluctuating trends over the five-year period from December 31, 2020, to December 31, 2024. The ratio increased from 0.41 in 2020 to 0.55 in 2022, indicating that the company generated more revenue for each dollar of assets during that period. However, in 2023, the total asset turnover ratio decreased to 0.49, and further declined to 0.45 in 2024.

The decreasing trend in the total asset turnover ratio in the latter years suggests that Palantir may be experiencing challenges in efficiently utilizing its assets to generate revenue. This could be a concern for investors as it may indicate inefficiencies in the company's operations or potentially underperforming assets.

Overall, a declining total asset turnover ratio may signal a need for the company to reassess its asset management strategies to improve efficiency and maximize returns on assets in order to sustain profitability and investor confidence in the future.