Palantir Technologies Inc. Class A Common Stock (PLTR)

Working capital turnover

		Dec 31, 2024	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	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	2,865,507	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	1,204,580	1,092,673	999,940	901,115	825,546
Total current assets	US$ in thousands	5,934,290	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	1,680,200	1,079,150
Total current liabilities	US$ in thousands	996,018	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	604,116	—
Working capital turnover		0.58	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	0.63	0.66	0.69	0.84	0.76

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,865,507K ÷ ($5,934,290K – $996,018K)
= 0.58

The working capital turnover ratio for Palantir Technologies Inc., Class A Common Stock has exhibited a declining trend from 0.76 in March 2020 to 0.58 in December 2024. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. Generally, a higher working capital turnover ratio is favorable as it suggests that the company is efficiently using its resources to support sales.

The decreasing trend observed in Palantir's working capital turnover ratio over the period may imply that the company's efficiency in utilizing its working capital to generate sales has been deteriorating. This could be a cause of concern as it may indicate inefficiencies in managing working capital, possibly resulting in a lower level of sales generated for each unit of working capital invested.

It is important for investors and stakeholders to monitor this ratio over time to assess the company's liquidity and operational efficiency. A declining trend may warrant further investigation into the company's working capital management practices and operational performance to ensure sustainable growth and profitability in the long run.