Palantir Technologies Inc. (NASDAQ:PLTR)

Return on Assets (ROA)

The ROA exhibited a negative trend from the earliest available data in December 2021, starting at -16.02%, and remained negative through September 2022, reaching a low point of -16.9%. From December 2022 onward, the metric showed a consistent improvement, moving into positive territory by September 2023 at 3.51%. This upward trend continued, with ROA rising steadily to reach 10.36% by June 2025. This indicates a gradual enhancement in asset efficiency and profitability over the observed period.

Financial Leverage

Financial leverage decreased modestly from 1.67 in March 2021 to 1.24 by June 2025, with some fluctuations over the quarters. The reduction suggests a slight decline in the use of debt relative to equity over time, reflecting a more conservative capital structure or effective debt management. The ratio remained relatively stable from early 2023 onward, hovering close to 1.24–1.28, indicating limited changes in financial leverage in the most recent periods.

Return on Equity (ROE)

Similar to ROA, ROE was negative through most of the period beginning December 2021, with the lowest point recorded at -23.5% in December 2021. Improvement started after this trough, turning positive by September 2023 at 4.62%. There was a consistent upward trajectory in subsequent quarters, with ROE reaching 12.87% by June 2025. The rising ROE alongside declining financial leverage and increasing ROA suggests improved operational performance and profitability combined with prudent financial management.

Net Profit Margin

The net profit margin exhibited a marked improvement over the periods analyzed. Initially, in the earlier quarters of 2021, the margin was significantly negative, reaching as low as -33.75%. Throughout 2022, there was a gradual recovery, with the margin improving from approximately -30% to around -19.61% by the end of the year. The trend continued positively through 2023 and into 2024, with the margin turning positive in late 2023, increasing steadily to 22.18% by mid-2025. This progression indicates a strong enhancement in profitability over time.

Asset Turnover

The asset turnover ratio, which measures the efficiency in generating revenue from assets, remained relatively stable with a slight downward trend in the latter periods. From a starting point near 0.47 in early 2021, it rose to a peak of 0.55 in late 2021 and early 2022. Subsequently, it experienced a gradual decline to about 0.45 by mid-2025. This suggests a minor decrease in asset utilization efficiency during the most recent quarters after an initial improvement phase.

Financial Leverage

Financial leverage showed a consistent reduction throughout the quarters. Beginning at 1.67 in the first quarter of 2021, the ratio steadily declined to 1.24 by mid-2025. This decrease implies a gradual reduction in the company's use of debt or liabilities relative to equity, possibly indicating a strengthening of the equity base or a strategic move towards lower financial risk.

Return on Equity (ROE)

Return on equity followed a similar trajectory to the net profit margin, starting with negative values around -22.71% in early 2021. The ROE worsened slightly through the latter part of 2021 and most of 2022, reaching close to -23.5%. A notable turning point occurred in late 2022 and into 2023 when ROE moved into positive territory, rising to double-digit positive percentages by early 2025, ending at approximately 12.87%. This trend underscores a significant improvement in the profitability from shareholders' equity over the observed periods.

The financial data reveals a series of notable trends over the observed periods. Key profitability metrics such as EBIT Margin and Return on Equity (ROE) show significant improvement, transitioning from negative to positive values, indicating enhanced operational efficiency and profitability.

Tax Burden

The tax burden ratio exhibits a consistent upward trend from 0.91 to 0.97 in the latest periods, suggesting a modest increase in the proportion of earnings retained after taxes.

Interest Burden

Interest burden remains stable and close to 1.00 throughout the latest available quarters, which implies minimal impact of interest expenses on earnings before taxes, thereby reflecting low financial expenses relative to operating profits.

EBIT Margin

Starting from deeply negative margins near -31.45% in early periods, EBIT margin steadily improves, turning positive by the December 2023 quarter and reaching above 22% by March 2025. This trend is indicative of substantial improvement in operational profitability and cost management.

Asset Turnover

The asset turnover ratio increased initially from 0.47 to a peak of 0.55 but gradually declined thereafter to approximately 0.46-0.47 by March 2025. This suggests a slight reduction in asset utilization efficiency in recent quarters.

Financial Leverage

Financial leverage consistently decreased from 1.67 in early 2021 to around 1.24 by mid-2025. This decline indicates a reduction in reliance on debt financing, implying a potentially lower financial risk profile.

Return on Equity (ROE)

ROE follows a trajectory similar to EBIT margin, recovering from approximately -23.5% to positive territory and reaching nearly 13% by March 2025. This progression signifies improved returns to shareholders and enhanced overall profitability.

In summary, the data reflects a positive transition from loss-making operations toward sustained profitability. The company manages to improve its earnings margins and returns on equity while concurrently reducing financial leverage and maintaining relatively stable asset turnover. The improvements in EBIT margin and ROE are particularly prominent, indicating strengthened operational performance and shareholder value creation over the analyzed timeframe.

Net Profit Margin

The net profit margin showed a significant negative trend at the beginning of the observed period, with values around -33.75% to -30.25% from late 2021 to early 2022. This negative margin gradually improved over subsequent quarters, crossing into positive territory by the quarter ending December 31, 2023, with 6.93%. From that point onward, the margin continued to rise steadily, reaching 22.18% by mid-2025. This suggests an overall improvement in profitability and cost management over the examined period.

Asset Turnover

Asset turnover began at 0.47 in early 2022, increasing modestly to a peak of 0.55 by late 2022 and early 2023. After this peak, the ratio gradually declined to 0.45 by early 2025, before a slight rebound to 0.47 in mid-2025. This trend indicates that the company was initially improving in generating revenue from its assets but faced a slight decrease in efficiency later, although the overall variation remains moderate.

Return on Assets (ROA)

The ROA mirrored the pattern seen in the net profit margin, starting with sharply negative returns near -16.9% in late 2021 and early 2022. A steady improvement followed, with ROA becoming positive by the quarter ending December 31, 2023, at 3.51%. This upward trajectory continued, reaching double-digit positive returns at 10.36% by mid-2025. This recovery signals enhanced operational effectiveness and asset utilization over time.

Tax Burden

The tax burden ratio exhibits a consistent upward trend beginning from the earliest available data in March 2023, increasing from 0.91 to 0.97 by June 2025. This indicates an improving position in terms of after-tax profit retention relative to pre-tax income over the observed period.

Interest Burden

The interest burden ratio remains stable and close to 1 starting from March 2023 through June 2025, suggesting very low or negligible interest expenses relative to earnings before interest and taxes during this period.

EBIT Margin

There is a marked improvement in EBIT margin from March 2021 through June 2025. Initially, margins are deeply negative, with values as low as approximately -31.45% to -28.24% in 2021. From the start of 2023 onward, the EBIT margin steadily ascends from approximately -18.87% in early 2022 to positive values by late 2023, reaching nearly 22.78% in June 2025. This progression reflects enhanced operational profitability and efficiency across the quarters.

Asset Turnover

The asset turnover ratio demonstrates moderate fluctuation but remains broadly stable, oscillating around 0.45 to 0.55 from late 2021 through mid-2025, with a slight downward drift in the latter periods. This stability indicates consistent efficiency in generating revenues from the company’s asset base with minor declines observed towards the end of the period.

Return on Assets (ROA)

The return on assets shows significant improvement from substantially negative values in 2021, peaking near -16.9%, to positive returns after 2022. Starting in late 2023, ROA transitions to positive territory, growing steadily to 10.36% by June 2025, highlighting a substantial enhancement in the company’s profitability relative to its asset base over time.

The financial data indicates significant performance improvements over the observed periods, particularly from the end of 2022 onwards. Key profitability metrics show a clear upward trajectory, suggesting enhanced operational efficiency and improved bottom-line results.

Tax Burden

The tax burden ratio demonstrates a consistent increase from 0.91 to 0.97 between the first quarter of 2023 and the second quarter of 2025. This rising trend indicates a growing portion of earnings retained after tax, reflecting either more efficient tax management or improved profitability that sustains higher post-tax earnings.

Interest Burden

The interest burden ratio steadily improves from 0.97 to a perfect 1.00 during the same period, implying a reduction in interest expenses relative to earnings before interest and taxes. This trend suggests that interest costs are becoming negligible or properly managed, contributing positively to the company's ability to convert operating income into earnings before taxes.

EBIT Margin

Starting from a negative margin in late 2021, the EBIT margin shows a gradual and sustained improvement over the subsequent periods. It moves from approximately -31% in December 2021 to a positive margin of 22.78% by the second quarter of 2025. This marks a significant operational turnaround, indicating an effective reduction in operating losses followed by consistent profitability.

Net Profit Margin

Similar to the EBIT margin, the net profit margin improves markedly from deeply negative values around -30% in late 2021 to a positive margin exceeding 22% by mid-2025. The net profit margin closely follows the trends observed in EBIT margin but includes the final impact of taxes and interest. The simultaneous improvement of net profit margin and the burden ratios highlights overall financial health enhancement and stronger earnings quality.

Overall, the data reflects a robust recovery trajectory with strong improvements in operational efficiency and profitability from the end of 2022 onwards. The company appears to have succeeded in mitigating its earlier losses, achieving sustainable profitability and increased earnings retention through effective tax and interest expense management.