Palantir Technologies Inc. (NASDAQ:PLTR)

Total Asset Turnover

The reported total asset turnover ratio increased from 0.41 in 2020 to a peak of 0.55 in 2022, followed by a decline to 0.49 in 2023 and 0.45 in 2024. The adjusted figures show a similar pattern, rising from 0.40 in 2020 to 0.53 in 2022, then decreasing to 0.51 and 0.46 in 2023 and 2024, respectively. This indicates a gradual improvement in asset utilization up to 2022, but a slight deterioration in subsequent years.

Current Ratio

The reported current ratio demonstrated a consistent increase, rising from 3.74 in 2020 to 5.96 in 2024, signaling improving short-term liquidity. The adjusted current ratio, which started at 5.45 in 2020, rose further to a peak of 8.31 in 2023, before slightly declining to 8.06 in 2024. Overall, the company’s ability to cover short-term liabilities with current assets strengthened notably over this period.

Debt to Equity and Debt to Capital

The reported debt to equity and debt to capital ratios are only available for 2020 (0.13 and 0.12 respectively). Adjusted ratios show a consistent decline in leverage from 2020 to 2024. Debt to equity decreased from 0.27 in 2020 to 0.04 in 2024, while debt to capital decreased from 0.21 to 0.04 during the same period, indicating a steady reduction in reliance on debt financing and a stronger equity base.

Financial Leverage

Financial leverage ratios, both reported and adjusted, declined gradually over the analyzed period. The reported financial leverage fell from 1.77 in 2020 to 1.27 in 2024, and the adjusted ratio decreased from 1.54 to 1.17, reflecting a reduced use of debt relative to equity and assets, suggesting a more conservative capital structure.

Profitability - Net Profit Margin

The company experienced significant improvement in profitability over the years. Reported net profit margin started at a deeply negative -106.75% in 2020, improved markedly to -19.61% in 2022, and turned positive at 9.43% in 2023, reaching 16.13% in 2024. Adjusted net profit margin followed a comparable trajectory, though with slightly different values, indicating the company's transition from consistent losses to profitable operations.

Return on Equity (ROE)

Reported ROE moved from a substantial negative -76.61% in 2020 to a positive 9.24% in 2024. Adjusted ROE showed a similar increasing trend, from -70.47% in 2020 to 8.79% in 2024. This upward movement reflects improving efficiency in generating returns for shareholders over the period.

Return on Assets (ROA)

ROA experienced a steady increase from highly negative levels to positive returns. Reported ROA started at -43.35% in 2020, reached -10.8% in 2022, and became positive at 4.64% in 2023, further improving to 7.29% in 2024. Adjusted ROA similarly improved from -45.77% in 2020 to 7.49% in 2024. The trend signals enhanced operational efficiency and better asset utilization.

The financial data reveals a consistent upward trend in revenue over the five-year period, increasing from approximately $1.09 billion in 2020 to nearly $2.87 billion in 2024. This steady growth suggests an expanding market presence or increased sales volume year-over-year.

Total assets show notable growth as well, rising from around $2.69 billion in 2020 to over $6.34 billion in 2024. This increase in asset base indicates significant investments or acquisitions, which may be aimed at supporting the expansion in operations or enhancing the company's infrastructure.

Reported Total Asset Turnover

This ratio, which measures revenue generated from total assets, exhibits a positive trend from 0.41 in 2020 to a peak of 0.55 in 2022. However, the turnover ratio declines to 0.49 in 2023 and further to 0.45 in 2024. The initial improvement points to more efficient utilization of assets to generate revenue, but the downward shift in the last two years may indicate diminishing asset efficiency as the asset base grows faster than revenue.

Adjusted Revenue and Adjusted Total Assets

Adjusted figures closely mirror the reported data, confirming the reliability of the trends observed. Adjusted revenue rises from approximately $1.07 billion in 2020 to about $2.89 billion in 2024, while adjusted total assets increase from around $2.65 billion to $6.34 billion over the same period. This reinforces the observation of consistent growth in both operational scale and asset base.

Adjusted Total Asset Turnover

Similar to the reported turnover ratio, the adjusted turnover ratio improves from 0.40 in 2020 to 0.53 in 2022, before slightly declining to 0.51 in 2023 and then to 0.46 in 2024. This pattern underscores the initial gains in asset utilization efficiency, followed by a moderation consistent with the increasing asset base outpacing revenue growth in recent years.

In summary, the financial data indicates robust revenue growth accompanied by significant increases in total assets. While asset turnover ratios initially showed improvement, suggesting enhanced efficiency in leveraging assets for revenue generation, recent declines imply a potential challenge in maintaining this efficiency as the company scales. Continuous monitoring of the balance between asset growth and revenue generation efficiency will be crucial for sustaining financial performance.

Current Assets

Current assets show a consistent upward trend from approximately $2.26 billion in 2020 to nearly $5.93 billion in 2024. This indicates a significant increase in the company's liquid or short-term resources over the five-year period.

Current Liabilities

Current liabilities fluctuate slightly, starting at about $604 million in 2020, rising to approximately $746 million in 2023, and then increasing further to around $996 million in 2024. Despite some variation, the overall trend is an increase in obligations due within one year.

Reported Current Ratio

The reported current ratio demonstrates a steady improvement, rising from 3.74 in 2020 to 5.96 in 2024. This suggests enhanced short-term liquidity and a stronger ability to cover current liabilities with current assets.

Adjusted Current Assets

Adjusted current assets closely track the reported current assets, growing from about $2.26 billion in 2020 to $5.93 billion in 2024. Minor differences in 2022 and 2023 may indicate adjustments for certain items, but the overall upward trajectory remains consistent.

Adjusted Current Liabilities

Adjusted current liabilities are significantly lower than reported current liabilities throughout the period. They decrease slightly from $414 million in 2020 to $405 million in 2022 before rising to $736 million in 2024. The adjusted figures suggest removal or reclassification of some liabilities, resulting in more conservative short-term obligations.

Adjusted Current Ratio

The adjusted current ratio shows a pronounced improvement from 5.45 in 2020 to a peak of 8.31 in 2023 and then a slight decrease to 8.06 in 2024. This indicates a strong liquidity position when considering the adjusted figures, highlighting better coverage of adjusted current liabilities by adjusted current assets compared to the reported basis.

Stockholders’ Equity

There is a consistent upward trend in stockholders’ equity over the observed periods. Starting at approximately 1.52 billion US dollars in the year ending 2020, it increased notably to around 2.29 billion in 2021, followed by continued growth to approximately 2.57 billion in 2022. This upward momentum persisted through 2023 and 2024, reaching roughly 3.48 billion and 5.00 billion US dollars, respectively. This pattern indicates a strengthening equity base over time.

Total Debt

Reported total debt was available only for the year ending 2020 at nearly 198 million US dollars. The adjusted total debt figures, available for all years, show a declining trend from approximately 457 million in 2020 down to 239 million in 2024, with moderate fluctuations but an overall reduction in debt levels over time.

Debt to Equity Ratios

The reported debt to equity ratio for 2020 was low at 0.13, indicating relatively low leverage at that point. Adjusted debt to equity ratios, available for all years, exhibit a clear declining trend, moving from 0.27 in 2020 down to 0.04 in 2024. This suggests that the company's leverage decreased significantly, with equity growing faster than debt, leading to a stronger balance sheet and potentially lower financial risk.

Overall Financial Position

The data indicates a positive financial evolution characterized by growing equity and decreasing leverage. The company appears to be strengthening its capital structure by growing equity substantially while managing to reduce adjusted debt levels, thereby improving its financial stability and possibly its creditworthiness over the analyzed period.

Total Debt and Capital Trends

Total debt was reported only in 2020, amounting to approximately $198 million. There is no further reported total debt data for subsequent years, indicating either a lack of reporting or a possible restructuring of debt presentation.

Total capital has exhibited a consistent upward trajectory from 2020 through 2024. Beginning at roughly $1.72 billion in 2020, it increased to approximately $2.29 billion in 2021, then to nearly $2.57 billion in 2022, following with $3.48 billion in 2023, and reached $5.00 billion by the end of 2024. This growth suggests significant capital expansion over the observed periods.

The reported debt to capital ratio was available only in 2020 at 0.12, indicating that debt comprised 12% of total capital at that time.

Adjusted Debt and Capital Analysis

Adjusted total debt shows a declining trend over the five-year timeframe. Starting at approximately $457 million in 2020, the adjusted debt decreased to $260 million in 2021, then further diminished to $249 million in 2022, continuing to $229 million in 2023, and slightly increasing to $239 million in 2024. This overall decrease suggests an improvement in debt management or reduction of liabilities when adjusted for non-standard items.

In comparison, adjusted total capital has steadily increased each year, moving from roughly $2.18 billion in 2020 to $2.82 billion in 2021, then to $3.11 billion in 2022, $4.08 billion in 2023, and finally $5.64 billion in 2024. This mirrors the trend observed in reported total capital but at consistently higher levels, possibly due to adjustments accounting for additional capital components.

The adjusted debt to capital ratio demonstrates a marked improvement over time, declining from 0.21 in 2020 to 0.09 in 2021, then down to 0.08 in 2022, followed by 0.06 in 2023, and reaching a low of 0.04 in 2024. This indicates a decreasing reliance on debt financing relative to total capital, reflecting an increasingly conservative capital structure with enhanced equity or other non-debt funding sources.

Overall Observations

The data suggests that the entity has successfully increased its capital base substantially from 2020 to 2024 while simultaneously reducing its leverage, particularly as measured by the adjusted debt to capital ratio. The declining adjusted debt alongside growing capital implies strengthening financial stability and potentially improved creditworthiness.

The consistency in the decline of leverage ratios over five years reflects a strategic emphasis on reducing debt risk and enhancing the balance sheet quality. This could position the organization favorably for future financing or investment opportunities.

Total assets

The total assets show a consistent and significant increase over the five-year period. Starting at approximately $2.69 billion in 2020, total assets grew each year, reaching about $6.34 billion by 2024. This indicates a strong expansion in the company’s asset base.

Total Palantir’s stockholders’ equity

Stockholders' equity also exhibits a steady upward trend. Beginning at around $1.52 billion in 2020, equity increased substantially to over $5 billion by 2024. This growth suggests improvements in net asset value and potentially retained earnings or capital injections.

Reported financial leverage

The reported financial leverage ratio declines gradually from 1.77 in 2020 to 1.27 in 2024. This decreasing trend implies the company is progressively relying less on debt financing relative to equity, reflecting a strengthening equity base or reduced liabilities in proportion to equity.

Adjusted total assets

Adjusted total assets closely follow the trend of reported total assets, starting at about $2.65 billion in 2020 and rising to $6.34 billion by 2024. The minor differences suggest that adjustments made do not significantly alter the overall asset valuation but maintain the strong growth trajectory.

Adjusted total equity

Adjusted total equity grows from roughly $1.72 billion in 2020 to $5.4 billion in 2024, maintaining a consistent upward movement. This aligns with the increase seen in reported equity figures, indicating robust equity growth even after adjustments.

Adjusted financial leverage

The adjusted financial leverage ratio decreases from 1.54 in 2020 to 1.17 in 2024. The reduction mirrors the trend of reported financial leverage, reaffirming the company’s decreasing dependence on debt compared to equity, even after adjustments.

Revenue and Adjusted Revenue Trends

Revenue has demonstrated consistent growth over the five-year period, increasing from approximately 1.09 billion USD in 2020 to about 2.87 billion USD in 2024. Similarly, adjusted revenue has shown a steady rise from around 1.07 billion USD in 2020 to approximately 2.89 billion USD in 2024. This upward trend reflects ongoing business expansion and suggests effective revenue generation capacity.

Net Income (Loss) and Adjusted Net Income Trends

The company experienced significant net losses in the initial years, with net income attributable to common stockholders amounting to a loss of over 1.16 billion USD in 2020 and reducing in magnitude to a loss of around 374 million USD in 2022. Notably, a positive net income was reported starting in 2023, with 209.8 million USD, which further increased to 462.2 million USD in 2024. Adjusted net income followed a similar pattern, with large losses in 2020 and 2021, a decrease in losses through 2022, and a shift to positive adjusted net income in 2023 and 2024, reaching 475 million USD in 2024.

Profit Margins

The reported net profit margin displayed a significant negative value initially, with -106.75% in 2020 and improving gradually to a positive margin of 16.13% in 2024. This indicates a transition from unprofitable operations toward sustainable profitability. The adjusted net profit margin similarly improved, transitioning from -113.31% in 2020 to a positive 16.44% in 2024, aligning with the adjusted net income results and indicating enhanced operational efficiency when adjustments are made.

Overall Analysis

The data reveals a clear trajectory of recovery and growth. Revenue and adjusted revenue have consistently increased year-over-year, while net income losses have diminished substantially, culminating in profitability in the most recent periods. The improvement in profit margins, both reported and adjusted, further underscores an effective transformation towards financial health and operational stability. This suggests that the company has been successful in improving its cost structure, scaling its revenues, or both, resulting in a positive shift in its bottom-line performance.

The financial data exhibits several significant trends in profitability and equity over the five-year period.

Net Income (Loss) attributable to common stockholders

The net loss has progressively decreased from a substantial loss of approximately $1.17 billion in 2020 to a modest loss of around $374 million in 2022. Notably, in 2023 and 2024, the company transitioned from losses to positive net income, reaching about $210 million and $462 million, respectively. This indicates a strong improvement in profitability over the period.

Total Palantir’s Stockholders’ Equity

Stockholders' equity shows a consistent and marked increase each year, nearly tripling from approximately $1.52 billion in 2020 to over $5 billion in 2024. This growth suggests a strengthening balance sheet and accumulated retained earnings or capital increases.

Reported Return on Equity (ROE)

The reported ROE improves substantially from a negative -76.61% in 2020 to a positive 9.24% in 2024. The steady improvement from negative territory through to positive returns reflects the company’s enhanced ability to generate profits relative to shareholder equity.

Adjusted Net Income (Loss)

Adjusted net income follows a similar trajectory to reported net income, beginning with significant losses that decrease each year, then turning positive in 2023 and increasing further in 2024. This adjusted figure suggests the company’s ongoing operational improvements when excluding certain items.

Adjusted Total Equity

Adjusted total equity also rises continuously from about $1.72 billion in 2020 to $5.4 billion in 2024, reinforcing the trend observed with reported equity and indicating growth in shareholders' resources after adjustments.

Adjusted ROE

Adjusted ROE trends mirror the reported ROE pattern, moving from a negative -70.47% in 2020 toward positive levels in the later years, reaching 8.79% in 2024. This illustrates improving profitability on an adjusted basis, highlighting stronger operational performance.

Overall, the data reveals a compelling transformation over five years characterized by shrinking losses, eventual profitability, and expanding equity bases. Both reported and adjusted metrics show consistent convergence toward positive financial outcomes, indicating a maturing company with improving financial health and efficiency in utilizing equity to generate returns.

Net Income (Loss) Attributable to Common Stockholders

The net income shows a significant improvement over the five-year period. Starting with a net loss of -$1,166,391 thousand in 2020, the losses diminished substantially in 2021 and 2022, recorded at -$520,379 thousand and -$373,705 thousand respectively. By 2023, the company achieved positive net income of $209,825 thousand, continuing to rise to $462,190 thousand in 2024. This reflects a strong turnaround from heavy losses to profitability.

Total Assets

Total assets demonstrate consistent growth year-over-year. From $2,690,504 thousand in 2020, assets increased to $3,247,450 thousand in 2021 and $3,461,239 thousand in 2022. The upward trend accelerated substantially in 2023 and 2024, reaching $4,522,425 thousand and ultimately $6,340,884 thousand by the end of 2024. This suggests ongoing expansion and increasing resource base.

Reported Return on Assets (ROA)

The reported ROA mirrors the net income trend, starting with a deeply negative figure of -43.35% in 2020, improving to -16.02% in 2021 and -10.80% in 2022. The company reported positive ROA in 2023 at 4.64%, further improving to 7.29% in 2024. This indicates improved efficiency and profitability relative to the asset base.

Adjusted Net Income (Loss)

Adjusted net income follows a pattern similar to reported net income. The large losses in 2020 at -$1,211,908 thousand narrowed to -$448,679 thousand in 2021 and -$438,870 thousand in 2022. Adjusted net income turned positive in 2023 with $300,736 thousand and grew to $475,001 thousand in 2024, showing consistent improvement in operational profitability after adjustments.

Adjusted Total Assets

Adjusted total assets closely track reported total assets, increasing steadily from $2,647,652 thousand in 2020 to $3,247,450 thousand in 2021 and $3,471,339 thousand in 2022. The company then experienced a marked increase in 2023 and 2024 reaching $4,532,925 thousand and $6,340,884 thousand respectively, indicating asset growth that aligns with the overall reported asset expansion.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA showed severe negative returns initially at -45.77% in 2020, with significant improvement over the next two years to -13.82% in 2021 and -12.64% in 2022. A positive shift occurred in 2023 with an adjusted ROA of 6.63%, which further improved slightly to 7.49% in 2024. This trend highlights increased operational effectiveness and profitability after adjustments.

Summary

Overall, the company exhibits a clear trajectory from substantial losses and negative returns to achieving profitability and positive returns on assets by 2023 and 2024. Asset growth throughout the period supports this financial improvement, reflecting expansion and possibly effective capital deployment. Both reported and adjusted metrics consistently corroborate this positive turning point, illustrating improved operational performance and financial health over time.