Palantir Technologies Inc. Class A Common Stock (PLTR)

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

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,225,010K ÷ ($4,138,620K – $746,018K)
= 0.66

The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing current assets and liabilities to support sales.

In the case of Palantir Technologies Inc., the working capital turnover has fluctuated over the last four years. In 2023, the ratio was 0.66, a decrease from 0.78 in 2022 but still higher than the ratios in 2021 and 2020, which were 0.70 and 0.66, respectively.

The decreasing trend in the working capital turnover ratio may suggest that Palantir is not effectively utilizing its working capital to support its sales growth. It could indicate inefficiencies in managing current assets and liabilities to drive revenue generation.

Overall, Palantir Technologies Inc. may need to focus on improving its working capital management practices to enhance operational efficiency and optimize the allocation of resources for future growth and profitability.