2022 Cash Flow Analysis for Palantir Technologies Inc. PLTR

Palantir Technologies Inc. is a multinational software company that specializes in big data analytics. The company is headquartered in Denver, Colorado, and was founded in 2003. Palantir Technologies is known for its data integration and analysis platforms, such as Palantir Gotham and Palantir Foundry, which are used by organizations in various sectors, including government, finance, and healthcare.

The cash flow statement shows how much cash or cash equivalents a company has generated and used during a specific period of time. It is divided into three sections: operating activities, investing activities, and financing activities. The cash flow statement helps investors and analysts understand how a company is managing its cash resources.

How to read the chart

The chart above shows the cash flow of Palantir Technologies in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We start on the left with the company's cash position at the beginning of the year. Because the cash increased during the year, a part of that cash was generated from operating activities. The cash flow from operating activities is the largest source of cash, while 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 received more cash from activities such as issuing debt or equity than it paid out.

After taking the change in cash into account, we end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To get 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 2022. 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 happen, but a simulation based on the company's reported cash flow for 2022. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Palantir Technologies generated $223.737 million in cash from operating activities, spent $45.427 million on investing activities, and received $85.996 million from financing activities. As a result, the company's cash balance increased by $260.421 million during the year.

The company's beginning cash balance was $2,366.914 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $2,627.335 million.

The company's capital expenditures for the year were $40.027 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 $183.71 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Palantir Technologies demonstrated a strong cash position in 2022, with a significant increase in cash balance by the end of the year. The positive cash flow from operating activities indicates robust operational efficiency, while the negative cash flow from investing activities suggests ongoing investments in growth and development. The positive cash flow from financing activities further bolstered the company's cash reserves, highlighting strategic financial management.