Palantir Technologies Inc. Class A Common Stock (PLTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 80.62% | 78.56% | 77.99% | 67.74% |
| Operating profit margin | 5.39% | -8.46% | -26.66% | -107.41% |
| Pretax margin | 10.32% | -19.08% | -31.68% | -107.90% |
| Net profit margin | 9.43% | -19.61% | -33.75% | -106.75% |
Palantir Technologies Inc.'s profitability ratios have shown significant improvements over the past four years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has exhibited a positive trend, increasing from 67.74% in 2020 to 80.62% in 2023. This improvement suggests that the company is effectively managing its production costs and generating higher profits on sales.
The operating profit margin measures the profitability of core operations before accounting for interest and taxes. Palantir's operating profit margin has increased significantly from -107.41% in 2020 to 5.39% in 2023, signaling a strong turnaround in operational efficiency and cost management.
Similarly, the pretax margin, which represents the company's profitability before taxes, has shown a positive trajectory, rising from -107.90% in 2020 to 10.32% in 2023. This improvement indicates that Palantir has been able to better control its operating expenses and generate higher profits before accounting for tax implications.
Finally, the net profit margin, reflecting the percentage of revenue that translates into net income, has also displayed a notable enhancement over the analyzed period, moving from -106.75% in 2020 to 9.43% in 2023. This positive trend suggests that Palantir has been successful in reducing non-operating expenses and increasing its bottom-line profitability.
Overall, the steady improvement in Palantir Technologies Inc.'s profitability ratios reflects the company's efforts in enhancing operational efficiency, controlling costs, and ultimately driving higher profitability levels.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.65% | -4.66% | -12.66% | -43.62% |
| Return on assets (ROA) | 4.64% | -10.80% | -16.02% | -43.35% |
| Return on total capital | 6.70% | -14.02% | -21.16% | -67.71% |
| Return on equity (ROE) | 6.04% | -14.57% | -22.71% | -76.61% |
Palantir Technologies Inc. Class A Common Stock has shown improvements in profitability ratios over the past four years.
1. Operating Return on Assets (Operating ROA): The company's operating ROA has gradually increased from -43.62% in 2020 to 2.65% in 2023. This indicates that the company has been more efficient in generating operating income from its assets.
2. Return on Assets (ROA): The ROA has also shown a positive trend, moving from -43.35% in 2020 to 4.64% in 2023. This indicates that the company has been more successful in generating profits from its total assets.
3. Return on Total Capital: The return on total capital has shown a significant recovery, improving from -67.71% in 2020 to 6.70% in 2023. This suggests that the company has been able to generate better returns for both equity and debt holders.
4. Return on Equity (ROE): The ROE has also shown a positive trend, increasing from -76.61% in 2020 to 6.04% in 2023. This improvement indicates that the company has been able to generate higher returns for its shareholders.
Overall, the profitability ratios of Palantir Technologies Inc. Class A Common Stock have exhibited positive trends over the past four years, reflecting improvements in operational efficiency and profitability.
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Palantir Technologies Inc. Class A Common Stock Profitability Ratios