2021 Cash Flow Analysis for Palantir Technologies Inc. PLTR

Palantir Technologies Inc. is a public American software company that specializes in big data analytics. Headquartered in Denver, Colorado, Palantir was founded in 2003 and is known for its platforms like Palantir Gotham and Palantir Foundry, which are used for data integration, analysis, and decision-making.

The cash flow statement provides insights into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Palantir Technologies in 2021. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. The cash increased during the year, primarily due to financing activities. The cash flow from operating activities is a significant source of cash, while investing activities resulted in a cash outflow.

The cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is positive, reflecting that the company raised more cash through methods such as issuing shares or taking on debt.

After accounting for the change in cash, we end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Palantir Technologies' cash flow, we have created a real-time counter that simulates the company's cash flow for 2021. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2021. The counter is designed to give you a sense of the scale of the company's cash flow and its rapid movement.

Cash Flow Statement

In 2021, Palantir Technologies generated $333.851 million in cash from operating activities, spent $397.912 million on investing activities, and raised $306.747 million from financing activities. Consequently, the company's cash balance increased by $238.768 million during the year.

The company's beginning cash balance was $2,128.146 million. This amount typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $2,366.914 million.

The company's capital expenditures for the year were $12.627 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $321.224 million in 2021. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Palantir Technologies' cash flow in 2021 highlights several key aspects. The company successfully increased its cash position by $238.768 million, driven largely by positive cash flow from financing activities. Despite a significant outflow from investing activities, the company maintained a strong cash balance, ending the year with $2,366.914 million. The positive free cash flow of $321.224 million indicates that Palantir has ample cash available for strategic initiatives, including potential investments, stock repurchases, or other financial maneuvers.