Palantir Technologies Inc. Class A Common Stock (PLTR)

Operating return on assets (Operating ROA)

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

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $119,966K ÷ $4,522,420K
= 2.65%

Palantir Technologies Inc.'s operating return on assets (ROA) has shown a significant improvement over the last four years. In 2023, the operating ROA stood at 2.65%, indicating that the company generated $0.0265 in operating income for every dollar of assets employed in its operations. This marks a positive turnaround from the negative figures in the preceding years, where the operating ROA was -4.66% in 2022, -12.66% in 2021, and a notably low -43.62% in 2020.

The steady increase in the operating ROA suggests that Palantir Technologies has been able to enhance its operational efficiency and profitability relative to its asset base. This improvement reflects the company's ability to generate higher operating income from its assets, which is a positive sign for investors and stakeholders.

Overall, the positive trend in Palantir Technologies' operating ROA demonstrates management's efforts to better utilize the company's assets to generate operating profits. It also indicates a potential strengthening of the company's financial position and operational performance over the years.