Palantir Technologies Inc. Class A Common Stock (PLTR)

Return on assets (ROA)

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

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $209,825K ÷ $4,522,420K
= 4.64%

The return on assets (ROA) is a key financial ratio that measures a company's ability to generate profit from its total assets. Palantir Technologies Inc.'s ROA has shown a significant improvement over the past four years.

In 2020, the ROA was -43.35%, indicating that the company incurred a substantial loss relative to its total assets during that period. However, in subsequent years, Palantir's ROA improved considerably. By the end of 2021, the ROA had increased to -16.02%, still showing a negative figure but a significant narrowing of the loss incurred compared to the previous year.

The positive trend continued in 2022, with the ROA further improving to -10.80%, indicating a reduction in losses relative to total assets. Finally, in 2023, Palantir achieved a positive ROA of 4.64%, signaling that the company was able to generate a profit from its assets during this period.

This progressive improvement in Palantir's ROA suggests enhanced efficiency in asset utilization and profitability. However, it is essential to monitor future ROA trends to evaluate the sustainability of Palantir's performance in generating profits from its asset base.