Palantir Technologies Inc. Class A Common Stock (PLTR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.25% | 80.62% | 78.56% | 77.99% | 67.74% |
| Operating profit margin | 10.83% | 5.39% | -8.46% | -26.66% | -107.41% |
| Pretax margin | 17.07% | 10.66% | -18.94% | -31.68% | -107.90% |
| Net profit margin | 16.13% | 9.43% | -19.61% | -33.75% | -106.75% |
The profitability ratios of Palantir Technologies Inc. Class A Common Stock show an improving trend over the years.
1. Gross Profit Margin: The company's gross profit margin has increased steadily from 67.74% in December 2020 to 80.25% in December 2024. This indicates that the company has been able to effectively manage its direct costs of goods sold and generate higher profits from its core operations.
2. Operating Profit Margin: Although the operating profit margin started in negative territory at -107.41% in December 2020, it has shown a significant improvement, reaching 10.83% by December 2024. This suggests that the company has made efforts to control its operating expenses and enhance operational efficiency.
3. Pretax Margin: The pretax margin also reflects a positive trajectory, moving from -107.90% in December 2020 to 17.07% in December 2024. This indicates that the company has been able to improve its profitability before accounting for taxes, which is a key indicator of financial performance.
4. Net Profit Margin: The net profit margin has shown a similar trend of improvement, increasing from -106.75% in December 2020 to 16.13% in December 2024. This indicates that the company's bottom line performance has strengthened over the years, reflecting better control over expenses and a more efficient use of resources.
In conclusion, Palantir Technologies Inc. has demonstrated a positive trend in its profitability ratios, indicating an improving financial performance and efficiency in managing costs and generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.90% | 2.65% | -4.66% | -12.66% | -43.62% |
| Return on assets (ROA) | 7.29% | 4.64% | -10.80% | -16.02% | -43.35% |
| Return on total capital | 0.00% | 3.45% | -13.92% | -21.16% | -76.51% |
| Return on equity (ROE) | 9.24% | 6.04% | -14.57% | -22.71% | -76.61% |
Palantir Technologies Inc. Class A Common Stock has shown improvement in its profitability ratios over the past few years.
- The Operating return on assets (Operating ROA) has improved from -43.62% as of December 31, 2020, to 4.90% as of December 31, 2024. This indicates that the company has become more efficient in generating operating profits from its assets.
- The Return on assets (ROA) has also shown a positive trend, increasing from -43.35% in December 31, 2020, to 7.29% in December 31, 2024. This demonstrates that the company has been able to generate higher profits from its total assets over the years.
- The Return on total capital has shown a similar trend of improvement, moving from -76.51% in December 31, 2020, to 0.00% in December 31, 2024. This indicates that the company has been able to generate some return for its total invested capital.
- The Return on equity (ROE) has also seen a positive growth trajectory, increasing from -76.61% in December 31, 2020, to 9.24% in December 31, 2024. This reflects an improvement in the company's profitability in relation to its equity holders.
Overall, the upward trend in these profitability ratios suggests that Palantir Technologies Inc. has made significant strides in enhancing its operational efficiency and profitability over the years, which could potentially be viewed positively by investors and stakeholders.
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Palantir Technologies Inc. Class A Common Stock Profitability Ratios