Palantir Technologies Inc. (NASDAQ:PLTR)

Receivables Turnover

The receivables turnover ratio exhibited fluctuations over the observed periods. Starting at 8.08 in March 2022, it decreased steadily to a low of 3.76 in September 2024 before showing slight recovery towards the end of the timeline, reaching 4.6 by June 2025. This trend indicates a decreasing efficiency in collecting receivables over time, with a moderate improvement noted in the most recent quarters.

Payables Turnover

The payables turnover ratio showed significant volatility. Initially recorded at 4.53 in March 2022, it sharply increased to a peak of 93.11 and 92.45 in June and September 2023 respectively. Subsequently, it declined but remained highly variable, with an exceptional spike to 5495.05 in March 2025 before falling again to 63.77 by June 2025. These dramatic fluctuations suggest inconsistent payment behavior or possible changes in supplier terms or operational conditions.

Working Capital Turnover

The working capital turnover ratio showed a generally declining trend from 0.7 in March 2022 to 0.58 by March 2025, with minor fluctuations. This gradual decrease implies a reduction in the efficiency with which working capital is utilized to generate revenue over time.

Average Receivable Collection Period

The average receivable collection period increased notably, beginning at 45 days in March 2022 and reaching a peak of 97 days in September 2024. Following this peak, there was a slight improvement with the period decreasing to 79 days by June 2025. This metric aligns inversely with the receivables turnover ratio, reinforcing the observation of deteriorating collection efficiency that later showed some reversal.

Average Payables Payment Period

The average payables payment period decreased sharply from 81 days in March 2022 to single-digit values during 2023 and 2024, with sporadic increases but generally remaining low. The period was as low as 1 day in March 2025, indicating a trend toward quicker settlement of payables. However, some erratic values and missing data points suggest irregularities in the payment schedule.

Revenue Trends

Revenue demonstrates a consistent upward trajectory over the examined periods. Starting from $341,234 thousand in March 2021, revenue increased steadily with minor fluctuations, reaching $1,003,697 thousand by June 2025. This represents a nearly threefold growth, indicating strong sales expansion and market demand over the four-year span. The growth pace appears to accelerate notably in the latter quarters, particularly from late 2023 onwards.

Accounts Receivable, Net

The accounts receivable balance exhibits considerable volatility but generally trends upward from $151,400 thousand in March 2021 to $747,484 thousand as of June 2025. Peaks are observed at several points, such as in September 2022 and June 2024, suggesting periods of increased credit sales or slower collections. The substantial increase from early 2023 to mid-2024 aligns with the rapid revenue growth during this timeframe, which may indicate amplified credit extension to customers.

Receivables Turnover Ratio

The receivables turnover ratio, which measures the efficiency of collecting receivables, shows a declining trend overall. Initial values in 2021 and early 2022 are relatively high, around 8.08 to 6.42, implying quicker collections relative to sales. However, from late 2022 through mid-2025, turnover ratios decrease to a range between approximately 3.76 and 5.44. This suggests a slowing in collections pace or increasing days sales outstanding. The decline could be attributed to higher accounts receivable balances relative to revenue or weakening collection effectiveness.

Integrated Insights

The combination of rapidly increasing revenue and rising accounts receivable alongside a declining receivables turnover ratio points to a growing investment in working capital. The company appears to be expanding sales at a robust rate but may be experiencing some challenges in collection efficiency or extending longer credit terms. This could pose potential cash flow management considerations that warrant monitoring.

The data reveals notable patterns and fluctuations across several key financial metrics over the reported quarters.

Cost of Revenue

The cost of revenue exhibits an overall upward trend throughout the observed periods. Starting from approximately $74.1 million in March 2021, it rises steadily with some fluctuations, reaching a peak near $174.5 million in December 2024 before slightly adjusting to about $193 million by June 2025. This persistent growth may reflect increased operational expenses, expansion activities, or rising input costs over time.

Accounts Payable

The accounts payable balance shows significant volatility over the periods. Initial values fluctuate between $17.2 million and $74.9 million from March 2021 to December 2021, followed by inconsistent movements, including sharp declines to values as low as $103 thousand in June 2025 and dramatic spikes such as $67.3 million in June 2024. The irregular pattern suggests variability in the timing of payments or changes in supplier terms.

Payables Turnover Ratio

The payables turnover ratio, available from December 2021 onwards, shows dramatic variation. Values range from moderate levels around 4.53-13.1 in early periods, escalating sharply to extremely high ratios such as 5495.05 in March 2025 and 267.25 in June 2025. Such extreme ratios indicate possible anomalies, extraordinary payment acceleration, or data irregularities in those quarters. Generally, the ratio's volatility reflects inconsistent payment cycles relative to accounts payable balances.

Overall, the increasing cost of revenue suggests expanding operational scope or rising costs. However, the substantial fluctuations in accounts payable and payables turnover ratio point to inconsistent supplier payment management or potential irregularities in financial cycles that warrant further investigation to understand underlying causes.

Working Capital

The working capital demonstrates a consistent upward trend over the entire period analyzed. Starting from approximately 1.92 billion US dollars at the end of the first quarter of 2021, it gradually increases quarter over quarter. By the end of the first quarter of 2025, working capital reaches approximately 5.80 billion US dollars. This represents robust growth and an expanding operational liquidity position for the company.

Revenue

Revenue also shows a steady and significant increase throughout the given quarters. Revenue grows from about 341 million US dollars in the first quarter of 2021 to just over 1 billion US dollars by the first quarter of 2025. This denotes a strong upward momentum in sales and business volume, with no evident periods of decline or stagnation. Growth appears consistent on a quarterly basis.

Working Capital Turnover

The working capital turnover ratio is available only from the fourth quarter of 2021 onwards. It starts at 0.7 and generally declines over time, reaching around 0.59 by the first quarter of 2025. This declining ratio suggests that while working capital is increasing, it is growing at a pace that outstrips revenue growth relative to working capital levels. This may indicate increasing investment in working capital or changes in operational efficiency in using working capital to generate revenue.

Overall Insights

The company shows strong revenue and working capital growth, indicative of expanding operations and improved liquidity. However, the declining working capital turnover ratio may warrant closer examination, as it points to potentially lower efficiency in converting working capital into revenue. This could be due to strategic accumulation of inventory, receivables, or other working capital components. Continuous monitoring of this ratio is advised to ensure optimal utilization of working capital alongside business growth.

Receivables Turnover Ratio

The receivables turnover ratio begins at 8.08 in March 2021, then experiences a notable decline shortly thereafter. Throughout 2022 and 2023, the ratio fluctuates with a downward trend overall, reaching levels as low as 3.76 by September 2024. A mild recovery is observed towards the end of the analyzed period, with the ratio increasing to 4.6 by June 2025. This decline indicates a decreasing efficiency in collecting receivables over the periods, though some improvement is noted in the latest quarters.

Average Receivable Collection Period

The average collection period exhibits an inverse pattern relative to the turnover ratio, starting around 45 days in March 2021 and increasing steadily to a peak of 97 days by September 2024. This suggests that the time taken to collect receivables has lengthened substantially over the course of the analyzed periods. Following this peak, a slight improvement is noted, with days decreasing to 79 by June 2025. The overall increase in collection days implies a deterioration in the company's receivables collection efficiency, although recent data show a modest recovery.

Summary of Trends

The examined data reveal a general decline in receivables management efficiency between 2021 and 2024, as demonstrated by a falling receivables turnover ratio and a rising average collection period. The negative trend points to potential challenges in cash flow management or credit policy effectiveness during this time. However, the incremental improvement seen in the last two quarters suggests some corrective measures or improvements in collection practices may have been implemented.

Payables Turnover Ratio

The payables turnover ratio shows substantial variability over the analyzed periods. Starting with a moderate ratio of 4.53 at the earliest available data point in March 31, 2022, it peaks notably at 93.11 in March 31, 2023, and remains elevated through the middle of 2023, with values above 90 in June and September 2023. Subsequently, the ratio declines significantly, reaching 12.34 by March 31, 2024, and fluctuates thereafter. A remarkable spike to 5495.05 occurs at December 31, 2024, an anomaly indicating either an extraordinary event or potential data irregularity. Following this spike, the ratio reduces sharply but remains relatively high compared to early periods, with values such as 267.25 in March 31, 2025, and 63.77 in June 30, 2025. Overall, the trend suggests highly inconsistent payables turnover, with periods of rapid payables processing interspersed with more moderate levels.

Average Payables Payment Period (Number of Days)

The average payment period inversely correlates with the payables turnover ratio, as expected. Initially, in March 31, 2022, the data records a payment period of 81 days, which shortens significantly to 28 days by June 30, 2022, followed by a moderate increase to 56 and 55 days in the subsequent two quarters. From March through September 2023, the period dramatically decreases to between 4 and 8 days, indicating a substantial acceleration in payment timing. Between December 31, 2023, and March 31, 2024, there is a gradual lengthening of the payment period to 30 and 53 days respectively, followed by continued variation—shortening to 20 days by September 30, 2024. Data for December 31, 2024, is missing, then a very short period of 1 day is observed on March 31, 2025, increasing slightly to 6 days by June 30, 2025. This pattern demonstrates fluctuating payment policies or operational conditions impacting payables management, with a notable instance of extremely fast payment around early 2025.

Summary

The payables turnover ratio and average payment period reveal a volatile payables management environment. The significant spikes and troughs suggest shifts in payment strategies, cash flow conditions, or vendor negotiations. The occasional extreme outliers, such as the extraordinarily high turnover ratio near the end of 2024 and the very brief payment period thereafter, merit further review to understand underlying causes. Generally, the data reflects rapid payment cycles in certain quarters contrasted with extended payment durations in others, indicating variability rather than a consistent trend.