Return on Assets (ROA)
since 2020
Calculation
Palantir Technologies Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to common stockholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 7.29% | = | 100 | × | 462,190) | ÷ | 6,340,884) |
| Dec 31, 2023 | 4.64% | = | 100 | × | 209,825) | ÷ | 4,522,425) |
| Dec 31, 2022 | -10.80% | = | 100 | × | (373,705) | ÷ | 3,461,239) |
| Dec 31, 2021 | -16.02% | = | 100 | × | (520,379) | ÷ | 3,247,450) |
| Dec 31, 2020 | -43.35% | = | 100 | × | (1,166,391) | ÷ | 2,690,504) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$ in thousands
The analysis of the annual financial data reveals several notable trends over the period from 2020 to 2024. Net income attributable to common stockholders exhibits a significant positive turnaround after a series of losses. The company experienced substantial net losses in 2020, 2021, and 2022, with the losses diminishing each year from approximately -$1,166 million in 2020 to -$374 million in 2022. However, in 2023, the company achieved profitability, reporting a net income of approximately $210 million, which further increased to about $462 million in 2024.
Total assets show a consistent upward trend over the analyzed years, indicating growth in the company's asset base. Starting at roughly $2.69 billion in 2020, total assets increased steadily each year, reaching about $6.34 billion by 2024. This growth in assets may reflect investments, acquisitions, or organic growth contributing to an expanding asset portfolio.
The return on assets (ROA) metric aligns closely with the net income trend, moving from negative territory to positive values. Initially, the ROA was highly negative at -43.35% in 2020, improving steadily through the subsequent years to -16.02% in 2021 and -10.8% in 2022. The shift to positive ROA occurred in 2023 at 4.64%, improving further to 7.29% in 2024. This progression suggests increased efficiency in generating profit from the company’s assets as profitability returned and strengthened.
- Summary of Key Trends:
- - The company reversed from substantial net losses to positive net income by 2023, showing strong profitability gains in 2024.
- - The asset base expanded significantly over the five-year period, more than doubling from 2020 to 2024.
- - Return on assets improved markedly, transitioning from a deeply negative position in 2020 to an increasingly positive and sustainable level by 2024, indicating better utilization of assets to generate earnings.
Overall, the financial data reflects a company that has undergone a successful turnaround, improving profitability and asset efficiency while expanding its asset base significantly over the analyzed period.
Comparison to Competitors
Palantir Technologies Inc., ROA, long-term trends, comparison to competitors
| Palantir Technologies Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 7.29% | 12.99% | 18.39% | 11.76% | 1.34% | 29.85% | 4.39% | 9.22% | 17.21% | 7.42% | 12.89% | 4.14% | 6.99% | 17.31% | 8.39% |
| Dec 31, 2023 | 4.64% | 13.41% | 18.23% | 18.36% | -3.65% | 27.26% | 5.55% | 8.58% | 17.56% | 6.33% | 3.03% | 0.21% | 9.96% | 11.90% | -2.72% |
| Dec 31, 2022 | -10.80% | 14.55% | 17.51% | 16.53% | -6.49% | 25.90% | 1.29% | 7.45% | 19.94% | 6.15% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| Dec 31, 2021 | -16.02% | 13.68% | 17.70% | 15.87% | -3.39% | 25.01% | 4.35% | 13.29% | 18.36% | 10.48% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Dec 31, 2020 | -43.35% | 13.78% | 21.66% | 14.95% | -10.09% | 14.72% | 3.58% | 16.70% | 14.70% | 8.78% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Sector (Software & Services)
Palantir Technologies Inc., ROA, long-term trends, comparison to sector (software & services)
| Palantir Technologies Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 7.29% | 12.19% |
| Dec 31, 2023 | 4.64% | 11.21% |
| Dec 31, 2022 | -10.80% | 11.41% |
| Dec 31, 2021 | -16.02% | 12.29% |
| Dec 31, 2020 | -43.35% | 9.68% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Information Technology)
Palantir Technologies Inc., ROA, long-term trends, comparison to industry (information technology)
| Palantir Technologies Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 7.29% | 11.95% |
| Dec 31, 2023 | 4.64% | 12.52% |
| Dec 31, 2022 | -10.80% | 14.57% |
| Dec 31, 2021 | -16.02% | 14.67% |
| Dec 31, 2020 | -43.35% | 11.45% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).