Palantir Technologies Inc. Class A Common Stock (PLTR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 232,995 | -359,580 | -484,854 | -1,164,890 |
| Long-term debt | US$ in thousands | — | — | 0 | 197,977 |
| Total stockholders’ equity | US$ in thousands | 3,475,560 | 2,565,330 | 2,291,030 | 1,522,550 |
| Return on total capital | 6.70% | -14.02% | -21.16% | -67.71% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $232,995K ÷ ($—K + $3,475,560K)
= 6.70%
Palantir Technologies Inc. Class A Common Stock has exhibited varying performance trends in terms of return on total capital over the past four years. In 2023, the return on total capital improved to 6.70%, indicating the company generated a 6.70% return for every dollar of total capital employed. This represents a positive shift from the negative returns seen in the previous years, notably -14.02% in 2022, -21.16% in 2021, and a significant decline to -67.71% in 2020.
The improvement in return on total capital in 2023 suggests that Palantir Technologies Inc. has been more effective in utilizing its total capital to generate returns for its shareholders compared to the previous years. However, it is important to note the substantial negative returns in the earlier years, indicating potential inefficiencies or challenges in capital utilization and operational performance during those periods.
Overall, the positive upswing in the return on total capital for 2023 signals a potentially more efficient and profitable use of capital by Palantir Technologies Inc., which may be a result of strategic initiatives or operational improvements implemented by the company. Further analysis and monitoring of the company's financial performance will be crucial to assess its sustainability and future implications on investor returns.
Peer comparison
Dec 31, 2023