Palantir Technologies Inc. (NASDAQ:PLTR)

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits notable volatility. It increased significantly from 36.99 in 2020 to a peak of 49.26 in 2021, then declined sharply to 27.55 in 2022, followed by a recovery to 46.59 in 2023 and a strong rise to 72.29 in 2024. This pattern suggests fluctuating efficiency in utilizing fixed assets to generate revenue, with the most recent year demonstrating a substantial improvement.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This ratio shows a consistent upward trend over the entire period. Starting at 4.43 in 2020, it increased steadily each year to reach 11.92 by 2024. The continuous growth indicates an improving effectiveness in leveraging fixed assets including leased assets, reflecting possibly better utilization or increased asset base management.

Total Asset Turnover

Total asset turnover increased from 0.41 in 2020 to 0.55 in 2022, indicating better utilization of the company’s total assets in generating sales during this period. However, the ratio declined thereafter to 0.49 in 2023 and further to 0.45 in 2024. This downward movement in the latter years may suggest a reduction in asset efficiency or expansion of asset base outpacing sales growth.

Equity Turnover

Equity turnover shows a generally declining trend with some fluctuations. It started at 0.72 in 2020, decreased slightly to 0.67 in 2021, rose to 0.74 in 2022, and then declined progressively to 0.64 in 2023 and 0.57 in 2024. Overall, this indicates a decreasing efficiency in generating sales relative to shareholders' equity over recent years.

Revenue Trend

The revenue shows a consistent and significant upward trend over the five-year period. Starting at approximately 1,092,673 thousand US dollars in 2020, revenue increased to about 2,865,507 thousand US dollars by 2024. This represents a nearly 2.6-fold increase, reflecting strong growth and an expanding business scale.

Property and Equipment, Net

The net value of property and equipment fluctuated over the period. It increased moderately from 29,541 thousand US dollars in 2020 to 31,304 thousand in 2021, then saw a substantial rise to 69,170 thousand in 2022. However, after that peak, it decreased to 47,758 thousand in 2023 and further to 39,638 thousand in 2024. This pattern suggests a significant investment in fixed assets in 2022, followed by asset reductions or depreciation in subsequent years.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, shows variability across the years. It increased from 36.99 in 2020 to 49.26 in 2021, indicating improved efficiency. The ratio then declined sharply to 27.55 in 2022, coinciding with the rise in net fixed assets. Subsequently, the turnover rebounded to 46.59 in 2023 and peaked at 72.29 in 2024, reflecting enhanced utilization of property and equipment to generate revenue, particularly in the latest year.

The financial data reveals several noteworthy trends over the examined five-year period. Revenue demonstrates a consistent upward trajectory, increasing each year from approximately $1.09 billion in 2020 to nearly $2.87 billion in 2024. This represents strong growth, almost tripling the revenue within the period, indicating expanding business operations or market share.

In contrast, the net value of property and equipment shows relatively low volatility with minor fluctuations. It increased slightly from $246.6 million in 2020 to $269.4 million in 2022 before decreasing to approximately $230.6 million in 2023, followed by a modest rebound to $240.4 million in 2024. This pattern suggests a stable asset base with occasional adjustments, perhaps due to asset disposals, impairments, or changes in capital expenditure strategies.

The net fixed asset turnover ratio exhibits a clear and significant upward trend. Starting at 4.43 in 2020, it steadily increased to 11.92 by 2024. This ratio reflects increasing efficiency in utilizing fixed assets to generate revenue. The improvement indicates that the company is generating substantially more revenue per dollar invested in property and equipment over time. The considerable rise in this ratio aligns with the rapid revenue growth, despite relatively stable asset levels, suggesting enhanced operational efficiency or higher asset utilization.

Revenue Growth

Consistently rising year over year, nearing a 2.6x increase from 2020 to 2024.

Property and Equipment, Net

Relatively stable with minor fluctuations; peaked in 2022, declined in 2023, and slightly increased in 2024.

Net Fixed Asset Turnover Ratio

Substantial increase over the period, indicating enhanced asset efficiency and productivity.

Overall, the data suggests successful revenue expansion without proportionate growth in fixed assets, resulting in markedly improved asset utilization. This could reflect strategic capital management, operational optimization, or shifts toward less asset-intensive business models.

Revenue

The revenue demonstrates a consistent upward trend over the five-year period, increasing from approximately $1.09 billion in 2020 to about $2.87 billion in 2024. This represents a substantial growth, indicating strong sales performance and expansion of business operations.

Total assets

Total assets have also increased steadily, from around $2.69 billion in 2020 to $6.34 billion in 2024. The growth rate in assets is significant, exceeding the pace of revenue growth, which suggests considerable investments in assets or acquisitions aimed at supporting future growth or operational expansion.

Total asset turnover

The total asset turnover ratio improved from 0.41 in 2020 to a peak of 0.55 in 2022, indicating enhanced efficiency in utilizing assets to generate revenue. However, this efficiency declined in the subsequent years to 0.49 in 2023 and further to 0.45 in 2024. This reduction suggests that the company’s asset base grew faster than its revenue during the last two years, resulting in a slight decrease in asset utilization effectiveness.

Overall analysis

The company shows strong growth in both revenue and total assets over the period. Initially, asset utilization improved, demonstrating better efficiency in generating sales from assets. However, the recent decline in the asset turnover ratio may warrant attention to ensure that asset growth translates effectively into revenue. The increasing asset base paired with revenue growth reflects ongoing expansion efforts but indicates a potential need to optimize asset deployment for sustained operational efficiency.

Revenue

The revenue has demonstrated a consistent upward trajectory over the five-year period. Starting from approximately $1.09 billion in 2020, it increased substantially each year to reach about $2.87 billion by 2024. This represents more than a twofold increase over the period, indicating strong growth in the company's sales or service income.

Total Palantir’s Stockholders’ Equity

The total stockholders' equity also shows a steady and significant increase across the years. Beginning at roughly $1.52 billion in 2020, it rose to over $5.00 billion by 2024. This notable growth suggests improvements in retained earnings, additional paid-in capital, or other equity components, reflecting enhanced financial strength and possibly successful capital raising or profitability.

Equity Turnover Ratio

The equity turnover ratio exhibits a downward trend over the analyzed period. It started at 0.72 in 2020 and declined to 0.57 by 2024. This decrease indicates that for each dollar of equity, the company is generating less revenue over time. While revenue and equity have both increased, equity has grown at a faster pace, leading to reduced efficiency in utilizing equity to generate sales.