Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2020
- Debt to Equity since 2020
- Total Asset Turnover since 2020
- Price to Operating Profit (P/OP) since 2020
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Palantir Technologies Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term activity ratios reveals fluctuating performance across the observed period. Several ratios demonstrate notable shifts, suggesting evolving efficiency in asset utilization and equity management. Overall, the period from 2021 to 2025 indicates a dynamic operational landscape.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits considerable volatility. It decreased significantly from 49.26 in 2021 to 27.55 in 2022, before recovering to 46.59 in 2023. Further increases are observed in 2024 and 2025, reaching 72.29 and 86.13 respectively. This suggests an improving ability to generate revenue from fixed assets in the later years of the period, following an initial decline.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When including operating leases and right-of-use assets, the net fixed asset turnover ratio presents a consistently upward trend. Starting at 6.21 in 2021, the ratio increases steadily to 17.76 in 2025. This indicates that incorporating these lease obligations results in a more substantial revenue generation relative to the broader fixed asset base, and that this relationship is strengthening over time.
- Total Asset Turnover
- The total asset turnover ratio demonstrates relative stability with minor fluctuations. It increased from 0.47 in 2021 to 0.55 in 2022, then decreased to 0.49 in 2023 and further to 0.45 in 2024, before recovering slightly to 0.50 in 2025. This suggests a generally consistent, though somewhat subdued, efficiency in utilizing all assets to generate revenue.
- Equity Turnover
- The equity turnover ratio shows a decreasing trend from 0.67 in 2021 to 0.57 in 2024, followed by a slight recovery to 0.61 in 2025. This indicates a diminishing ability to generate revenue from each dollar of equity in the earlier part of the period, with a modest improvement in the final year. The fluctuations suggest a changing relationship between revenue and equity financing.
In summary, the observed ratios paint a picture of a company with evolving asset utilization efficiency. While some ratios, like net fixed asset turnover, experienced initial declines followed by substantial improvements, others, such as total asset turnover and equity turnover, exhibited more moderate fluctuations. The inclusion of operating lease obligations significantly impacts the interpretation of fixed asset turnover, highlighting the growing importance of these arrangements.
Net Fixed Asset Turnover
Palantir Technologies Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits considerable fluctuation over the observed period. Initial values demonstrate a significant decrease followed by a strong upward trend. Revenue consistently increased year-over-year, while the value of property and equipment, net, showed initial growth, a subsequent decline, and then a modest increase.
- Net Fixed Asset Turnover
- In 2021, the net fixed asset turnover ratio stood at 49.26. A substantial decline was observed in 2022, with the ratio falling to 27.55. The ratio then recovered significantly in 2023, reaching 46.59. Further increases were noted in 2024 and 2025, with the ratio climbing to 72.29 and 86.13 respectively. This indicates increasing efficiency in generating revenue from fixed assets over the latter part of the period.
- Revenue Trend
- Revenue experienced consistent growth throughout the period. Starting at US$1,541,889 thousand in 2021, it rose to US$1,905,871 thousand in 2022, US$2,225,012 thousand in 2023, US$2,865,507 thousand in 2024, and reached US$4,475,446 thousand in 2025. This consistent revenue growth likely contributed to the increasing net fixed asset turnover ratio in later years.
- Property and Equipment, Net Trend
- The net value of property and equipment increased from US$31,304 thousand in 2021 to US$69,170 thousand in 2022. However, a decrease was then observed in 2023, falling to US$47,758 thousand, and continuing to US$39,638 thousand in 2024. A slight increase was recorded in 2025, with the value reaching US$51,960 thousand. The initial increase in fixed assets, followed by a decline, suggests potential asset disposals or depreciation exceeding new acquisitions.
The combined effect of increasing revenue and fluctuating net fixed assets resulted in the observed pattern for the net fixed asset turnover ratio. The substantial increase in the ratio from 2023 to 2025 suggests improved asset utilization and operational efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Palantir Technologies Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a consistently increasing trend in net fixed asset turnover, alongside fluctuating values in property and equipment, net. Revenue demonstrates a strong upward trajectory throughout the observed period.
- Revenue
- Revenue experienced substantial growth, increasing from US$1,541,889 thousand in 2021 to US$4,475,446 thousand in 2025. This represents a significant compound annual growth rate, indicating increasing sales generation.
- Property and Equipment, Net (including operating lease, right-of-use asset)
- Property and equipment, net, exhibited some volatility. It increased from US$248,202 thousand in 2021 to US$269,410 thousand in 2022, then decreased to US$230,621 thousand in 2023. A slight increase was observed in 2024 (US$240,378 thousand), followed by a further increase to US$252,065 thousand in 2025. The fluctuations suggest potential asset disposals or depreciation impacts, but the overall change remains relatively contained.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio demonstrates a clear and accelerating upward trend. Starting at 6.21 in 2021, it rose to 7.07 in 2022, 9.65 in 2023, 11.92 in 2024, and reached 17.76 in 2025. This indicates a progressively more efficient utilization of fixed assets to generate revenue. The increasing ratio suggests the company is becoming increasingly effective at converting its investment in property, plant, and equipment into sales. The substantial increase from 2023 to 2025 is particularly noteworthy.
The combination of revenue growth and relatively stable fixed asset investment has driven the significant improvement in net fixed asset turnover. This suggests strong operational performance and effective asset management.
Total Asset Turnover
Palantir Technologies Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Software & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a fluctuating pattern over the five-year period. While revenue consistently increased, the efficiency with which assets are utilized to generate that revenue has not shown a clear, sustained trend.
- Overall Trend
- The ratio initially increased from 0.47 in 2021 to 0.55 in 2022, indicating improved asset utilization. However, this was followed by a decrease to 0.49 in 2023 and a further decline to 0.45 in 2024. A slight recovery to 0.50 is observed in 2025, but the ratio remains below the peak achieved in 2022.
- Revenue and Asset Relationship
- Revenue demonstrated consistent year-over-year growth throughout the period. Despite this growth, the total asset turnover ratio did not consistently rise in tandem. The substantial increase in total assets, particularly between 2023 and 2025, appears to have outpaced revenue growth in certain periods, contributing to the fluctuations in the turnover ratio.
- Year-over-Year Changes
- The largest year-over-year change occurred between 2022 and 2023, with a decrease of 0.06. The decrease from 2023 to 2024 was smaller, at 0.04. The modest increase of 0.05 between 2024 and 2025 suggests a potential stabilization, though further observation is needed to confirm a definitive trend.
- Implications
- The fluctuations in the total asset turnover ratio suggest potential inefficiencies in asset management. While increasing revenue is positive, the company should evaluate whether its asset base is growing at an optimal rate relative to sales. A lower ratio may indicate overinvestment in assets, or underutilization of existing assets.
Equity Turnover
Palantir Technologies Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total Palantir’s stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Software & Services | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Revenue ÷ Total Palantir’s stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a fluctuating pattern. While revenue consistently increased year-over-year, the relationship between revenue and stockholders’ equity did not exhibit a clear, sustained trend.
- Overall Trend
- The equity turnover ratio began at 0.67 in 2021, increased to 0.74 in 2022, then decreased to 0.64 in 2023. A further decline to 0.57 was observed in 2024, followed by a slight recovery to 0.61 in 2025. This indicates that the company’s efficiency in generating revenue from its equity base has not consistently improved.
- Revenue Growth vs. Equity Turnover
- Despite substantial revenue growth throughout the period – from US$1,541,889 thousand in 2021 to US$4,475,446 thousand in 2025 – the equity turnover ratio did not consistently rise in tandem. This suggests that the growth in revenue was largely funded by increases in stockholders’ equity rather than by more efficient utilization of existing equity.
- Year-over-Year Changes
- The largest decrease in the equity turnover ratio occurred between 2023 and 2024, dropping from 0.64 to 0.57. This coincided with a significant increase in stockholders’ equity, indicating a disproportionate expansion of the equity base relative to revenue growth during that year. The modest increase in the ratio from 2024 to 2025 suggests a potential stabilization, but further monitoring is needed to confirm a sustained upward trend.
In conclusion, the equity turnover ratio suggests that while the company has experienced robust revenue growth, it has also significantly expanded its equity base. The fluctuating ratio indicates a dynamic relationship between revenue generation and equity utilization, warranting continued observation to assess long-term efficiency.