Palantir Technologies Inc. (NASDAQ:PLTR)

The analyzed financial data reveals several notable trends in key performance indicators over the five-year period, from the end of 2020 through the end of 2024.

Net Operating Profit After Taxes (NOPAT)

NOPAT shows a significant upward trend, starting from a substantial negative value of approximately -1,189 million US dollars at the end of 2020 to achieving positive figures by the end of 2023 and continuing to grow in 2024 to about 339 million US dollars. This progression indicates a transition from operating losses to profitability over the period, highlighting improved operational efficiency or revenue growth.

Cost of Capital

The cost of capital remains relatively stable throughout the timeframe, fluctuating narrowly around 33%, ranging from 32.91% to 33.28%. This stability suggests consistent market or company risk perceptions and financing costs over the analyzed period.

Invested Capital

Invested capital exhibits a fluctuating pattern. It increases steadily from approximately 2,179 million US dollars at the end of 2020 to a peak of about 3,072 million US dollars by the end of 2022. However, a sharp decline occurs in 2023, dropping significantly to approximately 1,238 million US dollars, followed by a rebound to around 2,507 million US dollars in 2024. This volatility may reflect changes in asset base, divestitures, or restructuring activities within the company.

Economic Profit

Economic profit remains negative throughout all periods, although it follows an improving trend. The loss decreases from roughly -1,909 million US dollars in 2020 to a low point in 2023 at about -204 million US dollars, before increasing in magnitude again to approximately -495 million US dollars in 2024. Despite achieving operational profitability by 2023, the continued negative economic profit indicates that returns have not sufficiently exceeded the cost of capital, suggesting inefficiencies in capital usage or high capital charges.

In summary, the company demonstrates operational improvement with NOPAT turning positive and growing in the later years. Capital investment levels vary considerably, and while financial costs remain stable, the negative economic profit throughout indicates challenges in generating value above the invested capital cost. This mixed picture suggests progress in core operations but continued focus may be warranted on capital efficiency and 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.

Economic Profit

The economic profit exhibited a notable improvement trend over the analyzed periods. Starting at a significant negative value of approximately -1.91 billion USD in 2020, the loss diminished to around -1.23 billion USD by 2021 and remained relatively stable in 2022. A substantial reduction in negative economic profit was observed in 2023, where the loss decreased sharply to approximately -204 million USD, followed by a slight increase in loss to around -495 million USD in 2024. This pattern suggests improving profitability or operational efficiency, although economic profit remained negative throughout.

Invested Capital

Invested capital demonstrated a general upward trend with some variability. The figure rose consistently from about 2.18 billion USD in 2020 to a peak nearing 3.07 billion USD in 2022. A marked decrease occurred in 2023, where invested capital dropped to approximately 1.24 billion USD, before rebounding in 2024 to approximately 2.51 billion USD. This fluctuation may indicate changes in asset base, investment levels, or divestitures during the period.

Economic Spread Ratio

The economic spread ratio, expressed as a percentage, showed consistent improvement across the time frame, starting at a highly negative -87.6% in 2020 and improving steadily to -47.6% in 2021 and -40.1% in 2022. The improvement trend continued with a more moderate negative spread of -16.45% in 2023, followed by a slight deterioration to -19.75% in 2024. The less negative spread suggests the company was narrowing the gap between return on invested capital and cost of capital over time, yet it remained below zero, indicating continued economic inefficiency.

Adjusted Revenue

The adjusted revenue shows a consistent upward trend over the five-year period. Starting at approximately $1.07 billion in 2020, it increased to about $1.57 billion in 2021, then $1.83 billion in 2022, $2.31 billion in 2023, and reached nearly $2.89 billion in 2024. This indicates robust growth in revenue generation year over year.

Economic Profit

Economic profit remains negative throughout the period, indicating that the company's costs and capital charges exceed its operating profits. However, there is a clear improvement in economic profit values over time. The loss narrows from roughly -$1.91 billion in 2020 to -$495 million in 2024. This suggests a reduction in economic loss magnitude, although profitability has yet to be attained.

Economic Profit Margin

The economic profit margin follows a similar trend to economic profit, starting from a deeply negative -178.45% in 2020 and improving substantially, albeit remaining negative, reaching -17.14% in 2024. The trend implies increased efficiency or profitability relative to revenue over time, but the company continues to operate at an economic loss as measured by this metric.

Overall Analysis

There is a positive trajectory in revenue growth accompanied by a steady reduction in economic losses, reflected both in absolute economic profit and profit margin terms. Although the company has yet to achieve positive economic profit or margin, the considerable improvement indicates progress toward improved financial performance and more effective cost and capital management.