Palantir Technologies Inc. Class A Common Stock (PLTR)

Total asset turnover

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

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,225,010K ÷ $4,522,420K
= 0.49

Palantir Technologies Inc.'s total asset turnover ratio has shown a fluctuating trend over the past four years, with the ratio declining from 0.41 in 2020 to 0.47 in 2021, before decreasing further to 0.55 in 2022 and then dropping to 0.49 in 2023. This ratio indicates that, on average, the company generated $0.49 in revenue for every dollar of total assets in 2023.

A total asset turnover ratio of less than 1 suggests that Palantir Technologies Inc. may not be efficiently utilizing its assets to generate revenue. The declining trend in the ratio over the years may raise concerns about the company's operational efficiency and effectiveness in generating sales from its asset base.

It is important for the company to monitor and improve its total asset turnover ratio to ensure optimal utilization of its assets and maximize revenue generation. Further analysis of the operational and financial strategies implemented by Palantir Technologies Inc. could provide insights into the factors influencing the fluctuations in its total asset turnover ratio.