Palantir Technologies Inc. Class A Common Stock (PLTR)

Working capital 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 current assets	US$ in thousands	5,934,290	4,138,620	3,041,580	2,863,250	2,257,430
Total current liabilities	US$ in thousands	996,018	746,018	587,941	660,061	603,823
Working capital turnover		0.58	0.66	0.78	0.70	0.66

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,865,510K ÷ ($5,934,290K – $996,018K)
= 0.58

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital.

Analyzing Palantir Technologies Inc. Class A Common Stock's working capital turnover over the past five years, we observe a fluctuating trend. In 2020, the ratio stood at 0.66, suggesting that for every dollar of working capital, the company generated $0.66 in sales.

The ratio improved in 2021 to 0.70, indicating a slight increase in efficiency in utilizing working capital to drive revenue. By 2022, the ratio further increased to 0.78, showcasing enhanced efficiency in capital utilization to support sales growth.

However, a decline was observed in 2023, with the ratio dropping back to 0.66, possibly signaling a temporary setback in the company's working capital management. This was followed by a more significant decrease in 2024, where the working capital turnover ratio fell to 0.58.

Overall, the fluctuating trend in Palantir Technologies Inc.'s working capital turnover suggests varying degrees of efficiency in utilizing working capital to generate sales over the years, highlighting the importance of maintaining optimal working capital levels to support revenue generation.