Palantir Technologies Inc. Class A Common Stock (PLTR)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	310,403	119,966	-161,201	-411,046	-1,173,680
Total assets	US$ in thousands	6,340,880	4,522,420	3,461,240	3,247,450	2,690,500
Operating ROA		4.90%	2.65%	-4.66%	-12.66%	-43.62%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $310,403K ÷ $6,340,880K
= 4.90%

Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating profit from its assets used in operations. In the case of Palantir Technologies Inc. Class A Common Stock, the trend in operating ROA over the years shows a significant improvement.

As of December 31, 2020, the company had a negative operating ROA of -43.62%, indicating that it was not effectively utilizing its assets to generate operating profits. However, there has been a noticeable turnaround in the following years. By December 31, 2021, the operating ROA had improved to -12.66%, still negative but showing a clear improvement from the previous year.

Subsequently, by December 31, 2022, the operating ROA continued to increase, reaching -4.66%, indicating further progress in efficiency and profitability. The positive trend persisted in the following years, with Palantir Technologies Inc. achieving a positive operating ROA of 2.65% by December 31, 2023, and further improving to 4.90% by December 31, 2024.

This positive trajectory in operating ROA suggests that the company has been able to enhance its asset utilization and operational efficiency over the years, ultimately generating more profit from its assets. Investors and stakeholders may view this trend positively as it reflects the company's ability to drive profitability through effective asset management and operational performance.