Palantir Technologies Inc. Class A Common Stock (PLTR)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	462,190	476,572	404,552	298,553	209,825	147,312	-48,068	-255,524	-373,705	-560,771	-539,033	-498,284	-520,379	-512,534	-1,263,716	-1,235,591	-1,166,391	-1,177,375	-463,916	-487,527
Total assets	US$ in thousands	6,340,880	5,768,100	5,191,880	4,807,080	4,522,420	4,193,420	3,980,260	3,683,140	3,461,240	3,318,840	3,282,340	3,319,180	3,247,450	3,224,330	3,075,670	3,014,180	2,690,500	2,603,710	1,892,360	—
ROA		7.29%	8.26%	7.79%	6.21%	4.64%	3.51%	-1.21%	-6.94%	-10.80%	-16.90%	-16.42%	-15.01%	-16.02%	-15.90%	-41.09%	-40.99%	-43.35%	-45.22%	-24.52%	—

December 31, 2024 calculation

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

The return on assets (ROA) for Palantir Technologies Inc. Class A Common Stock has shown a fluctuating trend over the analyzed periods. The ROA was negative for the majority of the quarters until March 31, 2023, indicating that the company's net income generated from its total assets was insufficient to cover the costs associated with those assets. However, starting from the second quarter of 2023, the ROA turned positive, suggesting an improvement in the company's efficiency in utilizing its assets to generate profit.

The ROA increased steadily from a low of -6.94% on March 31, 2023, reaching a peak of 8.26% on September 30, 2024, before slightly decreasing to 7.29% by December 31, 2024. This positive trend indicates that Palantir Technologies Inc. was able to enhance its profitability relative to its asset base during these periods.

Overall, the improving ROA suggests that the company has been successful in increasing its earnings in relation to its assets over time, which could be a positive indication of operational efficiency and financial performance. However, continued monitoring of the ROA trend is essential to assess the sustained effectiveness of the company's asset management strategy.