Stock Analysis on Net
Stock Analysis on Net

Palantir Technologies Inc. (NYSE:PLTR)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Palantir Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 6.04% = 4.64% × 1.30
Dec 31, 2022 -14.57% = -10.80% × 1.35
Dec 31, 2021 -22.71% = -16.02% × 1.42
Dec 31, 2020 -76.61% = -43.35% × 1.77

Based on: 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).

Three-Component Disaggregation of ROE

Palantir Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 6.04% = 9.43% × 0.49 × 1.30
Dec 31, 2022 -14.57% = -19.61% × 0.55 × 1.35
Dec 31, 2021 -22.71% = -33.75% × 0.47 × 1.42
Dec 31, 2020 -76.61% = -106.75% × 0.41 × 1.77

Based on: 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).

Five-Component Disaggregation of ROE

Palantir Technologies Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 6.04% = 0.91 × 0.99 × 10.47% × 0.49 × 1.30
Dec 31, 2022 -14.57% = — × — × -18.87% × 0.55 × 1.35
Dec 31, 2021 -22.71% = — × — × -31.45% × 0.47 × 1.42
Dec 31, 2020 -76.61% = — × — × -106.61% × 0.41 × 1.77

Based on: 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).

Two-Component Disaggregation of ROA

Palantir Technologies Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 4.64% = 9.43% × 0.49
Dec 31, 2022 -10.80% = -19.61% × 0.55
Dec 31, 2021 -16.02% = -33.75% × 0.47
Dec 31, 2020 -43.35% = -106.75% × 0.41

Based on: 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).

Four-Component Disaggregation of ROA

Palantir Technologies Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 4.64% = 0.91 × 0.99 × 10.47% × 0.49
Dec 31, 2022 -10.80% = — × — × -18.87% × 0.55
Dec 31, 2021 -16.02% = — × — × -31.45% × 0.47
Dec 31, 2020 -43.35% = — × — × -106.61% × 0.41

Based on: 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).

Disaggregation of Net Profit Margin

Palantir Technologies Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 9.43% = 0.91 × 0.99 × 10.47%
Dec 31, 2022 -19.61% = — × — × -18.87%
Dec 31, 2021 -33.75% = — × — × -31.45%
Dec 31, 2020 -106.75% = — × — × -106.61%

Based on: 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).