Palantir Technologies Inc. Class A Common Stock (PLTR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	462,190	209,825	-373,705	-520,379	-1,166,390
Total assets	US$ in thousands	6,340,880	4,522,420	3,461,240	3,247,450	2,690,500
ROA		7.29%	4.64%	-10.80%	-16.02%	-43.35%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $462,190K ÷ $6,340,880K
= 7.29%

Based on the provided data, Palantir Technologies Inc.'s return on assets (ROA) has shown significant improvement over the period from December 31, 2020, to December 31, 2024. The ROA started at a negative 43.35% in 2020, indicating that the company's assets were generating a significant loss. However, by December 31, 2024, the ROA had improved to a positive 7.29%, reflecting a turnaround in the company's asset utilization and profitability.

The negative ROA figures in the initial years suggest that Palantir Technologies Inc. was facing challenges in effectively utilizing its assets to generate profits. The significant improvement in the ROA over the years demonstrates the company's efforts to enhance operational efficiency and profitability. Achieving a positive ROA indicates that the company's profitability from its assets has increased, which is a positive sign for investors and stakeholders.

It is essential for Palantir Technologies Inc. to continue focusing on optimizing its asset management strategies to sustain and further improve its ROA in the future. The positive trend in ROA reflects the company's potential for generating returns from its assets and creating value for its shareholders.