Palantir Technologies Inc. (NASDAQ:PLTR)

Net Operating Profit After Taxes (NOPAT)

The NOPAT shows a significant improvement over the reported periods. Starting with a negative value of approximately -1.19 million US dollars in 2020, it decreased in negativity to -377,568 in 2021 and further to -221,451 in 2022. Subsequently, in 2023, NOPAT turned positive to 207,040 US dollars and increased to 339,176 US dollars in 2024, indicating a turnaround towards profitability.

Cost of Capital

The cost of capital remained relatively stable throughout the period, fluctuating marginally within a narrow range around 33.6% to 34%. This consistency suggests no significant changes in the risk profile or capital structure during these years.

Invested Capital

Invested capital exhibited variability across the periods. It increased from approximately 2.18 million US dollars in 2020 to a peak of about 3.07 million in 2022. However, there was a notable sharp decline to 1.24 million in 2023, followed by a recovery to 2.51 million in 2024. This pattern may reflect asset disposals, restructuring, or fluctuations in investment activities.

Economic Profit

Economic profit remained negative throughout all periods. Although the losses narrowed from about -1.92 million US dollars in 2020 to around -1.25 million in 2021 and 2022, the figure worsened again in 2023 to -212,491, before deteriorating further to -513,216 in 2024. Despite the improvement in NOPAT, the negative economic profit suggests that the returns generated did not exceed the cost of capital consistently, indicating ongoing challenges in value creation.

The financial data reveals a significant improvement in profitability over the analyzed period.

Net Income (Loss) Attributable to Common Stockholders

A substantial negative net income was reported in 2020, amounting to approximately -1.17 billion US dollars. This loss decreased markedly in 2021 and 2022 to approximately -520 million and -374 million US dollars, respectively. In 2023, the company reversed its financial position with a positive net income of around 210 million US dollars, followed by further growth to approximately 462 million US dollars in 2024. This trend indicates a successful transition from significant losses to sustained profitability.

Net Operating Profit After Taxes (NOPAT)

Consistent with net income trends, NOPAT was markedly negative in 2020 (-1.19 billion US dollars), improving progressively to roughly -378 million in 2021 and -221 million in 2022. From 2023 onward, NOPAT turned positive, reaching about 207 million US dollars and expanding further to approximately 339 million US dollars in 2024. This reflects enhanced operational efficiency and effective tax management contributing to profitability.

Overall, the data demonstrates a clear and robust upward trajectory in both net income and operating profitability. The shift from pronounced losses to solid gains signals improved operational performance and potential stabilization of the company's financial health.

The financial data reveals notable fluctuations in both the provision for income taxes and cash operating taxes over the five-year period examined.

Provision for (benefit from) income taxes

Initially, there was a tax benefit of -$12,636 thousand in 2020. This shifted to a tax provision of $31,885 thousand in 2021, indicating a significant increase in tax expenses. In the following years, the provision decreased to $10,067 thousand in 2022, then rose again to $19,716 thousand in 2023, and slightly increased to $21,255 thousand in 2024. Overall, the provision for income taxes shows variability, with the initial tax benefit transitioning to recurring tax expenses that fluctuate but generally trend at a moderate level after 2021.

Cash operating taxes

Cash operating taxes experienced substantial variation across the period. The value was $13,182 thousand in 2020 and decreased to $7,577 thousand in 2021, showing a reduction in actual cash tax payments. However, there was a dramatic surge to $67,243 thousand in 2022, representing a significant cash outflow for taxes. This was followed by a sharp decrease to $1,246 thousand in 2023 and a negative outflow of -$15,989 thousand in 2024, indicating tax refunds or credits exceeding taxes paid. This irregular pattern suggests variability in the company's taxable income, tax planning strategies, or changes in tax regulations impacting cash taxes paid over time.

In summary, the data indicates a transition from tax benefits to taxable obligations in terms of accounting provision, with visible volatility year-over-year. The cash operating taxes display extreme fluctuations with a peak in 2022 and subsequent negative cash taxes in 2024, signaling potentially significant tax recoveries or adjustments in that year. This combination reflects an unstable tax environment or operational variability affecting the company's tax position during this period.

Total Reported Debt & Leases

There is a clear downward trend in total reported debt and leases from 2020 through 2023, decreasing from approximately 457 million USD to about 229 million USD. This represents a nearly 50% reduction over four years. In 2024, however, the debt level shows a slight increase to approximately 239 million USD, indicating a potential shift in capital structure or financing strategy.

Total Palantir’s Stockholders’ Equity

Stockholders’ equity has exhibited consistent and strong growth over the five-year period. Starting at around 1.52 billion USD in 2020, it increased steadily each year, reaching 5.00 billion USD by 2024. This trend suggests substantial value creation and effective retention of earnings or capital infusion, reflecting robust financial health and increased shareholder wealth.

Invested Capital

Invested capital generally increased from 2020 to 2022, rising from approximately 2.18 billion USD to about 3.07 billion USD, indicating growing deployment of resources in the business. However, there is a notable and sharp decline in 2023 to approximately 1.24 billion USD, followed by a recovery to 2.51 billion USD in 2024. The 2023 dip could signify asset disposals, restructuring, or a strategic shift in investment focus, with a partial rebound in the following year.

The analysis of the provided financial data reveals several noteworthy trends and fluctuations over the five-year period ending in 2024.

Economic Profit

Economic profit demonstrates a substantial improvement from 2020 to 2023, increasing from a significant negative value of approximately -1.92 billion US dollars in 2020 to a considerably reduced loss of around -212 million US dollars in 2023. However, in 2024, the economic profit deteriorates again, though remaining better than the initial years, registering a negative value near -513 million US dollars.

Invested Capital

Invested capital shows an overall upward trend, initially increasing steadily from about 2.18 billion US dollars in 2020 to a peak near 3.07 billion US dollars in 2022. This is followed by a sharp decline to approximately 1.24 billion US dollars in 2023, then a notable recovery to about 2.51 billion US dollars in 2024. This fluctuation indicates significant variation in the capital allocated or employed within the company during the observed timeframe.

Economic Spread Ratio

The economic spread ratio exhibits a gradual improvement throughout the period, starting from a severely negative ratio of -88.31% in 2020 and progressing toward less negative values over time. By 2023, the ratio reached -17.17%, reflecting increased efficiency or profitability relative to the cost of capital. However, in 2024, a slight decline to -20.47% is observed, suggesting a minor setback in economic profitability compared to the prior year, although still substantially improved relative to the earlier years.

In summary, the data indicates that although the company has not achieved positive economic profit in any of the years presented, there has been a marked improvement in reducing losses and enhancing the efficiency of invested capital through 2023. The sharp fluctuations in invested capital in the recent years and the partial regression in economic profit and spread in 2024 warrant further investigation to understand underlying causes and future prospects.

Economic Profit

The economic profit showed a significant improvement over the period from 2020 to 2024. Starting at a substantial loss of approximately -1,924,141 thousand US dollars in 2020, the loss decreased considerably to around -513,216 thousand US dollars by 2024. The year 2023 exhibited the lowest loss of -212,491 thousand US dollars, indicating a notable but temporary reduction in negative economic profit.

Adjusted Revenue

Adjusted revenue exhibited consistent and robust growth throughout the examined years. From approximately 1,069,583 thousand US dollars in 2020, revenue increased steadily each year, reaching nearly 2,890,068 thousand US dollars by 2024. This upward trend demonstrates successful revenue expansion efforts over the five-year span.

Economic Profit Margin

The economic profit margin showed a marked improvement from a deeply negative margin of -179.9% in 2020 to -17.76% in 2024. The margin improved sharply through 2023 when it reached its best level at -9.21%, indicating a narrowing gap between revenue and economic profit losses. However, there was a slight deterioration in 2024, although it remained significantly better than the earlier years.

Overall Analysis

Despite persistent economic losses, the company demonstrated a clear trend of improving financial performance. Adjusted revenue consistently increased, contributing to a reduction in economic losses and an improvement in economic profit margins. The year 2023 stands out as the period with the most favorable economic profit margin and a notable decrease in loss magnitude. However, the economic profit margin's slight regression in 2024 suggests a need for continued focus on cost management and operational efficiency to sustain and extend profitability improvements.