Palantir Technologies Inc. Class A Common Stock (PLTR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,003,280	3,475,560	2,565,330	2,291,030	1,522,550
ROE		9.24%	6.04%	-14.57%	-22.71%	-76.61%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $462,190K ÷ $5,003,280K
= 9.24%

The return on equity (ROE) of Palantir Technologies Inc. Class A Common Stock has undergone significant fluctuations over the past few years based on the provided data.

As of December 31, 2020, the ROE was at a notably low level of -76.61%, indicating that the company's earnings were not generating adequate returns in relation to its equity. However, there was a marked improvement by December 31, 2021, with the ROE declining to -22.71%, although still in negative territory.

By December 31, 2022, the ROE showed further improvement, reaching -14.57%, suggesting the company was making progress in utilizing its equity more efficiently. This trend continued into December 31, 2023, when the ROE turned positive at 6.04%, signifying that Palantir Technologies Inc. was effectively generating returns on its shareholders' equity.

The most recent data point, as of December 31, 2024, showed a further increase in ROE to 9.24%, indicating continued improvement in the company's profitability and efficiency in leveraging its equity to generate income for shareholders. Overall, the positive trend in ROE over the years suggests that Palantir Technologies Inc. has been making strides in enhancing its financial performance and creating value for its investors.