Palantir Technologies Inc. Class A Common Stock (PLTR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,475,560	2,565,330	2,291,030	1,522,550
ROE		6.04%	-14.57%	-22.71%	-76.61%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $209,825K ÷ $3,475,560K
= 6.04%

Palantir Technologies Inc. Class A Common Stock has demonstrated a fluctuating trend in return on equity (ROE) over the past four years. The ROE stood at -76.61% on December 31, 2020, indicating a significant decline and potential financial distress. However, there has been a gradual improvement in ROE in subsequent years, with figures of -22.71% on December 31, 2021, -14.57% on December 31, 2022, and 6.04% on December 31, 2023.

The positive ROE of 6.04% in 2023 suggests that Palantir Technologies Inc. has been able to generate a modest profit relative to shareholders' equity during that period. This improvement in ROE may indicate better financial performance and efficiency in the utilization of equity. It is worth noting that the negative ROE figures in previous years reflect challenges faced by the company in generating profits compared to the equity invested.

Overall, the positive trend in ROE from 2020 to 2023 shows a potential turnaround in Palantir Technologies Inc.'s profitability and efficiency in utilizing shareholders' equity. Continued monitoring of ROE will be essential to assess the company's financial health and performance over time.