Palantir Technologies Inc. Class A Common Stock (PLTR)

Working capital 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
Revenue (ttm)	US$ in thousands	2,646,338	2,478,981	2,334,164	2,225,012	2,125,286	2,045,007	1,984,700	1,905,871	1,830,114	1,744,380	1,647,012	1,541,889	1,431,113	1,328,333
Total current assets	US$ in thousands	5,351,960	4,773,510	4,436,060	4,138,620	3,809,400	3,576,910	3,256,150	3,041,580	2,946,610	2,902,440	2,927,370	2,863,250	2,811,490	2,662,550	2,589,700	2,257,430	2,394,420
Total current liabilities	US$ in thousands	943,456	806,919	750,553	746,018	688,925	685,384	601,413	587,941	688,350	665,742	669,104	660,061	681,509	682,586	667,626	603,823	942,187
Working capital turnover		0.60	0.62	0.63	0.66	0.68	0.71	0.75	0.78	0.81	0.78	0.73	0.70	0.67	0.67

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,646,338K ÷ ($5,351,960K – $943,456K)
= 0.60

The working capital turnover ratio for Palantir Technologies Inc. Class A Common Stock has shown a decreasing trend over the past few quarters, indicating a decline in the efficiency of the company's working capital management. The ratio has decreased from 0.81 in Sep 30, 2022, to 0.60 in Sep 30, 2024.

A working capital turnover ratio below 1 suggests that Palantir Technologies may not be efficiently utilizing its working capital to generate sales revenue. This could be a cause for concern as it indicates that the company may have excess working capital tied up in non-productive assets or inefficiently managed inventory.

A downward trend in the working capital turnover ratio may also indicate potential liquidity issues or difficulties in converting working capital into sales. Investors and analysts should closely monitor this ratio and investigate the reasons behind the decline to ensure the company's financial health and operational efficiency.