Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Palantir Technologies Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Palantir Technologies Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Palantir Technologies Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Palantir Technologies Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Palantir Technologies Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Palantir Technologies Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Palantir Technologies Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 2,225,012) | 1,905,871) | 1,541,889) | 1,092,673) | |
| Accounts receivable, net | 364,784) | 258,346) | 190,923) | 156,932) | |
| Short-term Activity Ratio | |||||
| Receivables turnover1 | 6.10 | 7.38 | 8.08 | 6.96 | |
| Benchmarks | |||||
| Receivables Turnover, Competitors2 | |||||
| Accenture PLC | 6.00 | 5.87 | 5.74 | 6.16 | |
| Adobe Inc. | 8.73 | 8.53 | 8.41 | 9.20 | |
| Autodesk Inc. | 5.21 | 6.13 | 5.89 | 5.02 | |
| Cadence Design Systems Inc. | 8.36 | 7.32 | 8.85 | 7.93 | |
| CrowdStrike Holdings Inc. | 3.58 | 3.94 | 3.66 | 2.92 | |
| International Business Machines Corp. | 8.57 | 9.25 | 8.49 | 10.32 | |
| Intuit Inc. | 35.48 | 28.53 | 24.64 | 51.54 | |
| Microsoft Corp. | 4.35 | 4.48 | 4.42 | 4.47 | |
| Oracle Corp. | 7.22 | 7.13 | 7.48 | 7.04 | |
| Palo Alto Networks Inc. | 2.80 | 2.57 | 3.43 | 3.29 | |
| Salesforce Inc. | 2.92 | 2.72 | 2.73 | 2.77 | |
| ServiceNow Inc. | 4.41 | 4.20 | 4.24 | 4.48 | |
| Synopsys Inc. | 6.17 | 6.38 | 7.40 | 4.72 | |
| Receivables Turnover, Sector | |||||
| Software & Services | 5.15 | 5.22 | 5.25 | 5.60 | |
| Receivables Turnover, Industry | |||||
| Information Technology | 7.37 | 7.42 | 7.56 | 8.00 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 2,225,012 ÷ 364,784 = 6.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Palantir Technologies Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Palantir Technologies Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Cost of revenue | 431,105) | 408,549) | 339,404) | 352,547) | |
| Accounts payable | 12,122) | 44,788) | 74,907) | 16,358) | |
| Short-term Activity Ratio | |||||
| Payables turnover1 | 35.56 | 9.12 | 4.53 | 21.55 | |
| Benchmarks | |||||
| Payables Turnover, Competitors2 | |||||
| Accenture PLC | 17.41 | 16.37 | 15.03 | 22.48 | |
| Adobe Inc. | 7.50 | 5.71 | 5.98 | 5.63 | |
| Autodesk Inc. | 4.71 | 3.46 | 2.75 | 3.88 | |
| Cadence Design Systems Inc. | 4.77 | 7.89 | — | — | |
| CrowdStrike Holdings Inc. | 13.25 | 8.05 | 19.03 | 105.30 | |
| International Business Machines Corp. | 6.67 | 6.87 | 6.54 | 7.75 | |
| Intuit Inc. | 4.93 | 3.26 | 2.70 | 4.52 | |
| Microsoft Corp. | 3.64 | 3.30 | 3.44 | 3.68 | |
| Oracle Corp. | 11.27 | 6.74 | 10.54 | 12.46 | |
| Palo Alto Networks Inc. | 14.43 | 13.43 | 22.41 | 15.72 | |
| Salesforce Inc. | — | — | — | — | |
| ServiceNow Inc. | 15.25 | 5.74 | 15.20 | 28.83 | |
| Synopsys Inc. | 7.84 | 28.30 | 31.44 | 26.49 | |
| Payables Turnover, Sector | |||||
| Software & Services | 6.22 | 5.52 | 5.70 | 6.60 | |
| Payables Turnover, Industry | |||||
| Information Technology | 4.87 | 4.54 | 4.99 | 5.36 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2023 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 431,105 ÷ 12,122 = 35.56
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Palantir Technologies Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Palantir Technologies Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Current assets | 4,138,618) | 3,041,577) | 2,863,250) | 2,257,429) | |
| Less: Current liabilities | 746,018) | 587,941) | 660,061) | 603,823) | |
| Working capital | 3,392,600) | 2,453,636) | 2,203,189) | 1,653,606) | |
| Revenue | 2,225,012) | 1,905,871) | 1,541,889) | 1,092,673) | |
| Short-term Activity Ratio | |||||
| Working capital turnover1 | 0.66 | 0.78 | 0.70 | 0.66 | |
| Benchmarks | |||||
| Working Capital Turnover, Competitors2 | |||||
| Accenture PLC | 11.93 | 15.07 | 12.77 | 8.71 | |
| Adobe Inc. | 6.85 | 20.28 | 9.09 | 4.89 | |
| Autodesk Inc. | — | — | — | — | |
| Cadence Design Systems Inc. | 10.61 | 9.92 | 4.01 | 3.94 | |
| CrowdStrike Holdings Inc. | 1.46 | 1.25 | 0.61 | 0.71 | |
| International Business Machines Corp. | — | — | — | — | |
| Intuit Inc. | 8.13 | 8.98 | 3.85 | 1.73 | |
| Microsoft Corp. | 2.65 | 2.66 | 1.76 | 1.30 | |
| Oracle Corp. | — | 3.50 | 1.29 | 1.12 | |
| Palo Alto Networks Inc. | — | — | — | 1.40 | |
| Salesforce Inc. | 62.21 | 24.95 | 5.11 | 15.29 | |
| ServiceNow Inc. | 21.77 | 11.16 | 21.76 | 5.76 | |
| Synopsys Inc. | 13.12 | 21.34 | 10.65 | 9.00 | |
| Working Capital Turnover, Sector | |||||
| Software & Services | 5.36 | 4.80 | 2.77 | 2.19 | |
| Working Capital Turnover, Industry | |||||
| Information Technology | 5.14 | 5.64 | 3.82 | 2.84 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 2,225,012 ÷ 3,392,600 = 0.66
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Palantir Technologies Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Receivable Collection Period
Palantir Technologies Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Receivables turnover | 6.10 | 7.38 | 8.08 | 6.96 | |
| Short-term Activity Ratio (no. days) | |||||
| Average receivable collection period1 | 60 | 49 | 45 | 52 | |
| Benchmarks (no. days) | |||||
| Average Receivable Collection Period, Competitors2 | |||||
| Accenture PLC | 61 | 62 | 64 | 59 | |
| Adobe Inc. | 42 | 43 | 43 | 40 | |
| Autodesk Inc. | 70 | 60 | 62 | 73 | |
| Cadence Design Systems Inc. | 44 | 50 | 41 | 46 | |
| CrowdStrike Holdings Inc. | 102 | 93 | 100 | 125 | |
| International Business Machines Corp. | 43 | 39 | 43 | 35 | |
| Intuit Inc. | 10 | 13 | 15 | 7 | |
| Microsoft Corp. | 84 | 81 | 83 | 82 | |
| Oracle Corp. | 51 | 51 | 49 | 52 | |
| Palo Alto Networks Inc. | 130 | 142 | 106 | 111 | |
| Salesforce Inc. | 125 | 134 | 134 | 132 | |
| ServiceNow Inc. | 83 | 87 | 86 | 82 | |
| Synopsys Inc. | 59 | 57 | 49 | 77 | |
| Average Receivable Collection Period, Sector | |||||
| Software & Services | 71 | 70 | 70 | 65 | |
| Average Receivable Collection Period, Industry | |||||
| Information Technology | 50 | 49 | 48 | 46 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.10 = 60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Palantir Technologies Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Palantir Technologies Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Payables turnover | 35.56 | 9.12 | 4.53 | 21.55 | |
| Short-term Activity Ratio (no. days) | |||||
| Average payables payment period1 | 10 | 40 | 81 | 17 | |
| Benchmarks (no. days) | |||||
| Average Payables Payment Period, Competitors2 | |||||
| Accenture PLC | 21 | 22 | 24 | 16 | |
| Adobe Inc. | 49 | 64 | 61 | 65 | |
| Autodesk Inc. | 78 | 105 | 133 | 94 | |
| Cadence Design Systems Inc. | 77 | 46 | — | — | |
| CrowdStrike Holdings Inc. | 28 | 45 | 19 | 3 | |
| International Business Machines Corp. | 55 | 53 | 56 | 47 | |
| Intuit Inc. | 74 | 112 | 135 | 81 | |
| Microsoft Corp. | 100 | 111 | 106 | 99 | |
| Oracle Corp. | 32 | 54 | 35 | 29 | |
| Palo Alto Networks Inc. | 25 | 27 | 16 | 23 | |
| Salesforce Inc. | — | — | — | — | |
| ServiceNow Inc. | 24 | 64 | 24 | 13 | |
| Synopsys Inc. | 47 | 13 | 12 | 14 | |
| Average Payables Payment Period, Sector | |||||
| Software & Services | 59 | 66 | 64 | 55 | |
| Average Payables Payment Period, Industry | |||||
| Information Technology | 75 | 80 | 73 | 68 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 35.56 = 10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Palantir Technologies Inc. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |