Palantir Technologies Inc. (NASDAQ:PLTR) 

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibited a generally increasing trend throughout the periods analyzed. Starting from 39.34 in the first quarter of 2022, the ratio declined to a low point of 27.55 by the end of 2022. Subsequently, the ratio steadily increased, reaching 85.24 by the third quarter of 2025. This suggests an improving efficiency in the use of net fixed assets in generating revenue over time, particularly from early 2023 onward.

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

This ratio showed a more stable and consistent upward trend compared to the net fixed asset turnover. Beginning at 6.17 in the first quarter of 2022, the ratio gradually increased with minor fluctuations, reaching 15.58 by the third quarter of 2025. The inclusion of operating lease and right-of-use asset appears to have provided a more conservative but steadily improving measure of asset utilization over the observed periods.

Total Asset Turnover

The total asset turnover ratio remained relatively stable but demonstrated a slight downward trend over time. It peaked at 0.55 in both the third and fourth quarters of 2022 but declined gradually to a low of 0.45 by the fourth quarter of 2024 before slightly rebounding to 0.48 by the third quarter of 2025. This indicates a modest decrease in the efficiency with which total assets generate revenue, followed by marginal improvement near the end of the period.

Equity Turnover

The equity turnover ratio showed a decreasing trend during the timeframe. Starting at 0.7 in the first quarter of 2022, the ratio declined steadily to a low of 0.57 at the end of 2024 and maintained a similar level with minor fluctuations through the third quarter of 2025. This pattern suggests a reduction in the revenue generated per unit of equity, which could imply lower operational efficiency or changes in equity structure.

Revenue Trends

The company’s revenue has exhibited a consistent upward trajectory over the observed periods. Starting from approximately $446 million in the first quarter of 2022, revenue has steadily increased each quarter, reaching over $1.18 billion by the third quarter of 2025. This indicates strong and sustained top-line growth across the three and a half year span.

Property and Equipment, Net

The net book value of property and equipment initially showed a rising trend from about $41.9 million at the beginning of 2022 to a peak near $69.2 million at the end of 2022. Following this peak, there was a consistent decline through subsequent quarters, leveling off around $39.7 million from early 2024 to mid-2025, before a slight increase in the last reported quarters to approximately $45.7 million. This suggests that after a period of capital asset acquisitions or investments early on, the company's net fixed assets diminished possibly due to depreciation, disposals, or less investment in fixed assets in later periods.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures how efficiently the company generates revenue from its net fixed assets, decreased substantially from about 39.3 in early 2022 to a low of 27.55 by the end of 2022. However, it experienced a marked and uninterrupted increase thereafter, climbing sharply from Q1 2023 and reaching an exceptionally high level of 85.24 by the third quarter of 2025. This indicates that the company has been significantly improving its efficiency in utilizing fixed assets to generate revenue, especially as the ratio more than doubled from the trough. The increasing ratio, combined with the flattening and slight rise in net fixed assets, underscores a trend of enhanced asset utilization and stronger operational performance over the later periods.

Overall Insight

The data reveals a growth-oriented revenue performance alongside more efficient utilization of fixed assets. Initial investment or capital expenditure led to a peak in property and equipment net value by late 2022, after which asset levels stabilized or decreased somewhat. Meanwhile, the company's ability to generate revenue from these assets has greatly improved, suggesting operational optimization or better asset management. The simultaneous growth in revenue and enhanced asset turnover ratio points to a positive operational synergy, contributing to the company's expanding scale and improving efficiency.

The analysis of the quarterly financial data reveals distinct patterns in revenue, property and equipment net value, and net fixed asset turnover for the company.

Revenue (US$ in thousands)

The revenue exhibits a consistent upward trend throughout the observed periods. Starting from $446,357 thousand in March 2022, the revenue rises steadily each quarter, reaching $1,181,092 thousand by September 2025. This reflects a strong growth trajectory over the analyzed timeframe, with no interruptions or decreases in revenue reported.

Property and Equipment, Net (US$ in thousands)

This asset category shows a different pattern compared to revenue. Initially valued at $266,754 thousand in March 2022, the net value of property and equipment decreases gradually over the subsequent quarters, hitting a low around $220,613 thousand in March 2024. Thereafter, it exhibits minor fluctuations but remains relatively stable around the $240,000-$250,000 thousand range through September 2025. This suggests a possible divestment, depreciation, or limited reinvestment in fixed assets during the early to mid-periods followed by stabilization.

Net Fixed Asset Turnover (Ratio)

The net fixed asset turnover ratio shows a generally increasing trend, indicating improving efficiency in the use of fixed assets to generate revenue. Beginning at 6.17 in March 2022, the ratio rises steadily and, despite some minor declines, attains a high of 15.58 by September 2025. This doubling in turnover ratio corresponds with the combination of rising revenue and the relatively stable or slightly decreasing fixed asset base over time, highlighting enhanced asset utilization.

Overall, the data suggest the company is experiencing robust revenue growth while managing to improve efficiency in its asset utilization. The decline and subsequent stabilization in property and equipment net value—paired with rising revenue—indicate that the company may be optimizing its asset base or relying less on incremental fixed asset investment to drive revenue growth. The continuous increase in net fixed asset turnover supports this conclusion, reflecting superior operational leverage and asset management.

Revenue Trends

The revenue of the company demonstrates consistent growth over the analyzed periods. Starting from approximately $446 million in the first quarter of 2022, revenue increased steadily quarter-over-quarter, reaching over $1.18 billion by the third quarter of 2025. This indicates a strong upward trend with accelerating growth, particularly notable from mid-2023 onward, where quarterly increases become more pronounced.

Total Assets Trends

Total assets also show a marked upward trajectory throughout the observed timeframe. Beginning at about $3.32 billion in early 2022, total assets expanded steadily each quarter, crossing $8.11 billion by the third quarter of 2025. The growth in total assets appears to accelerate alongside revenue, suggesting ongoing investments or asset accumulation aligned with business expansion.

Total Asset Turnover Ratio Trends

The total asset turnover ratio exhibits a declining trend over the evaluated periods. Initially around 0.50 in early 2022, the ratio declined gradually to a low near 0.45 by the fourth quarter of 2024, with a modest recovery to 0.48 by the third quarter of 2025. This decline implies that while assets are growing significantly, the efficiency in generating revenue from these assets has decreased somewhat, potentially due to the asset base expanding faster than revenue or changes in asset utilization.

Overall Analysis

The company is experiencing robust revenue and asset growth, signaling expansion and increased scale. However, the downward trend in asset turnover ratio suggests a reduction in operational efficiency in asset utilization, which could indicate heavier capital investment, changes in asset mix, or temporary inefficiencies. Monitoring this ratio alongside revenue and asset growth will be important for assessing long-term profitability and operational effectiveness.

The financial data reveals a consistent upward trend in revenue over the observed periods, indicating sustained growth in the company's operational performance. Revenue increased steadily from approximately $446 million in the first quarter of 2022 to over $1.18 billion by the third quarter of 2025. This growth suggests effective revenue generation and potentially successful market expansion or product development initiatives.

In parallel, total stockholders’ equity also shows a significant and continuous increase, moving from around $2.36 billion in the first quarter of 2022 to nearly $6.59 billion by the third quarter of 2025. This growth in equity reflects accumulated earnings, retained profits, or possibly capital infusions, contributing to a stronger financial position and enhanced shareholder value over time.

Despite the positive trends in revenue and equity, the equity turnover ratio demonstrates a gradual decline throughout the periods. The ratio decreased from 0.70 at the beginning of 2022 to a low of 0.57 by early 2025, before marginally improving to 0.59 in the last recorded quarter. This downward movement indicates that the company is generating slightly less revenue per dollar of equity over time, which could suggest diminishing efficiency in utilizing equity capital to generate sales, or that the equity base is growing faster than revenue.

Revenue Trend

Steady and substantial growth from $446 million to $1.18 billion over the observed periods.

Total Stockholders’ Equity

Consistent increase from $2.36 billion to $6.59 billion, implying stronger capitalization and accumulation of value.

Equity Turnover Ratio

Gradual decline from 0.70 to approximately 0.58, highlighting decreasing revenue generation efficiency relative to equity.

In summary, while the company demonstrates robust growth in both revenue and stockholders’ equity, the decreasing equity turnover ratio suggests the need to monitor capital efficiency closely. Maintaining or improving this ratio could optimize shareholder returns and operational effectiveness in the context of expanding equity.