NVIDIA Corp. (NASDAQ:NVDA)

Goodwill

Goodwill exhibited a substantial increase from 618 million US dollars in 2020 to 4,193 million in 2021, followed by a stable yet gradual rise through the subsequent years, reaching 5,188 million by 2025. This indicates significant acquisitions or revaluations occurring in 2021, with sustained growth thereafter.

Acquisition-related Intangible Assets

These assets surged sharply from 195 million US dollars in 2020 to 3,280 million in 2021, then rose slightly to 3,418 million in 2022, before experiencing a decline to 2,642 million in 2024. A mild recovery to 2,900 million is noted in 2025. This trend suggests sizable acquisition asset intake around 2021, followed by amortization or impairment actions reducing net value in later years.

Patents and Licensed Technology

The value of patents and licensed technology showed moderate growth from 520 million US dollars in 2020 to 706 million in 2021, remaining relatively stable around 717 million in 2022. However, a decline to approximately 449 million from 2023 onwards indicates possible expirations, changes in valuation, or decreased capitalization of these assets.

Amortizable Intangible Assets, Gross Carrying Amount

The gross carrying amount of amortizable intangible assets increased dramatically from 715 million US dollars in 2020 to 3,986 million in 2021, then showed a gradual decrease to 3,091 million in 2024, with a slight uptick to 3,349 million in 2025. This pattern aligns with initial acquisition recognition followed by disposals or amortization deductions.

Accumulated Amortization

Accumulated amortization rose steadily in magnitude (negative values) each year, increasing from -666 million US dollars in 2020 to -2,542 million by 2025. This consistent increase in amortization reflects the systematic expense recognition against intangible assets over time.

Amortizable Intangible Assets, Net Carrying Amount

The net carrying amount after amortization showed a notable rise from 49 million US dollars in 2020 to 2,737 million in 2021, followed by a steady decline to 807 million by 2025. This indicates heavy amortization or impairments diminishing the net value of these assets over the years.

Goodwill and Amortizable Intangible Assets (Combined)

The combined total of goodwill and amortizable intangible assets increased sharply from 667 million US dollars in 2020 to 6,930 million in 2021, then fluctuated downward to 5,542 million in 2024 before rising again to 5,995 million in 2025. This reflects significant acquisition activity early in the period and a partial recovery after some reductions in intangible asset balances.

Total Assets

The reported total assets demonstrate a strong upward trend over the six-year period, increasing from $17,315 million in January 2020 to $111,601 million in January 2025. This reflects a more than sixfold increase, with the most notable surge occurring between January 2023 and January 2025. The adjusted total assets, which exclude goodwill, follow a similar pattern but at slightly lower levels, rising from $16,697 million to $106,413 million in the same timeframe. Both metrics show significant growth, indicating substantial asset accumulation and company expansion.

Shareholders' Equity

Reported shareholders' equity also shows a consistent growth trend, growing from $12,204 million in January 2020 to $79,327 million in January 2025. Despite some fluctuations, such as a decline between January 2022 and January 2023, the overall movement is strongly positive. The adjusted shareholders’ equity, which adjusts for goodwill, follows a parallel trend but with slightly lower values; it starts at $11,586 million and reaches $74,139 million over the same period. The adjustment highlights the impact that goodwill has on equity figures but does not materially change the growth narrative.

Comparative Analysis of Reported vs. Adjusted Figures

The difference between reported and adjusted total assets and shareholders' equity widens over time, reflecting increasing goodwill or intangible asset values as the company grows. However, the relative gap remains proportionally moderate compared to the total size, indicating a balanced asset base that is not overly reliant on intangible assets. This suggests prudent asset management and possibly successful acquisitions or internal growth increasing intangible assets.

Insights

The overall data indicates robust growth in both asset base and equity, supporting an expanding capital structure. The consistency between reported and adjusted figures supports confidence in the quality of assets and equity. The growth acceleration after 2023 could be indicative of strategic investments, increased profitability, or market expansion. The observed trends point toward strengthening financial health and increasing shareholder value over the period analyzed.

The analysis of the financial ratios over the six-year period reveals a significant evolution in operational efficiency, leverage, and profitability.

Total Asset Turnover

The reported total asset turnover ratio exhibits a moderately fluctuating but overall increasing trend, moving from 0.63 in 2020 to 1.17 in 2025. The adjusted total asset turnover, which excludes goodwill impacts, shows a similar trajectory but consistently remains higher than the reported figures. It begins at 0.65 in 2020 and rises steadily to 1.23 in 2025. The increase, especially pronounced from 2023 onwards, suggests an improving efficiency in utilizing assets to generate revenue.

Financial Leverage

Reported financial leverage shows variability, increasing from 1.42 in 2020 to a peak of 1.86 in 2023, followed by a decline to 1.41 in 2025. Adjusted financial leverage demonstrates a similar pattern but includes higher leverage values during the earlier years, peaking at 2.08 in 2023, before decreasing more sharply to 1.44 in 2025. The downward trend in leverage after 2023 indicates a reduction in debt reliance or improved equity structure over the later years.

Return on Equity (ROE)

Both reported and adjusted ROE display substantial growth overall. Reported ROE rises from 22.91% in 2020 to 91.87% in 2025, with notable volatility including a dip in 2023 at 19.76%. Adjusted ROE is consistently higher than reported figures, climbing from 24.13% to 98.3% over the same period. This pronounced increase and volatility suggest significant improvements in net profitability relative to shareholder equity, albeit with some fluctuations likely influenced by operational or market factors.

Return on Assets (ROA)

Reported ROA trends upward with some variation, starting at 16.15% in 2020, falling to 10.61% in 2023, and then surging to 65.3% in 2025. The adjusted ROA follows a similar pattern but remains higher, beginning at 16.75% and increasing to 68.49%. The sharp increase in the final years indicates enhanced asset profitability and efficiency, aligning with trends observed in asset turnover ratios.

Overall, the data reflects a company that has improved its asset efficiency and profitability substantially over the period, especially after 2022. The adjusted metrics, which account for the removal of goodwill, suggest that the company’s core operational performance is stronger than the reported figures indicate. The decline in financial leverage after 2023 may also point to a strategic shift towards a more conservative capital structure, which coincides with markedly higher returns on equity and assets.

The analysis of the reported and goodwill adjusted financial data over the periods presented reveals several notable trends and insights regarding asset base and efficiency in asset utilization.

Total Assets

There is a consistent and significant increase in both reported total assets and adjusted total assets from January 26, 2020, through January 26, 2025. Reported total assets nearly increased by a factor of 6.4, rising from approximately $17.3 billion to $111.6 billion. Adjusted total assets also show strong growth, increasing from about $16.7 billion to $106.4 billion during the same time frame. The difference between reported and adjusted assets suggests the presence of goodwill and other intangible assets that have been excluded in the adjusted figures but maintaining a very similar growth trajectory.

Total Asset Turnover

The reported total asset turnover ratio exhibits a general upward trend after some fluctuations. Starting at 0.63 in January 2020, it decreased slightly to 0.58 in January 2021 before gradually increasing each year to achieve 1.17 by January 2025. This indicates a strengthening efficiency in generating revenue relative to asset size over time.

The adjusted total asset turnover follows a comparable but slightly higher trajectory, beginning at 0.65 and rising steadily to 1.23. This pattern implies that when goodwill and perhaps other intangible assets are excluded, the company’s asset utilization efficiency is marginally better, demonstrating effective management of tangible assets to drive revenue.

Insights

The sharp growth in total assets likely reflects substantial investments or acquisitions made over the period, which is typical for a rapidly expanding company in the technology sector.

The improvement in total asset turnover ratios suggests that despite the increasing asset base, the company has been successful in enhancing its operational efficiency and generating higher revenue per dollar of asset. This trend is more pronounced on the adjusted basis, possibly indicating that the core assets (excluding goodwill) are increasingly productive.

The narrowing difference between reported and adjusted asset turnover ratios over time may suggest improving quality or reassessment of intangible assets, or a balance between acquiring assets with and without goodwill implications.

The analysis of the financial data reveals distinct trends in the company's asset base, equity position, and financial leverage over the six-year period.

Total Assets

There is a consistent growth in both reported and adjusted total assets from 2020 through 2025. Reported total assets increased substantially from approximately US$17.3 billion in 2020 to US$111.6 billion in 2025. The adjusted total assets show a parallel trend, rising from around US$16.7 billion to US$106.4 billion over the same period. Notably, the values peak in 2025, despite some fluctuations in previous years, such as a slight decrease observed from 2022 to 2023.

Shareholders’ Equity

The shareholders’ equity, both reported and adjusted, follows a similar upward trajectory. Reported equity grows from about US$12.2 billion in 2020 to US$79.3 billion in 2025, while adjusted equity increases from roughly US$11.6 billion to US$74.1 billion. However, equity values display some volatility, with a decline observed between 2022 and 2023, before recovering strongly in subsequent years.

Financial Leverage

Financial leverage ratios indicate the company’s reliance on debt relative to equity. The reported financial leverage fluctuates mildly, starting at 1.42 in 2020, peaking at 1.86 in 2023, and then decreasing back to 1.41 by 2025. The adjusted leverage presents a slightly higher and more variable pattern, rising from 1.44 in 2020 to a peak of 2.08 in 2023, before falling to 1.44 in 2025. This suggests a period of increased leverage and potentially higher risk around 2023, with a reversion towards lower leverage levels thereafter.

Overall, the company demonstrates robust growth in asset size and equity while managing to reduce financial leverage toward the end of the period. The adjustments for goodwill appear to lower the total asset and equity figures consistently but do not materially alter the observed trends or leverage dynamics. The peak in financial leverage around 2023 corresponds with a temporary compression in equity suggesting a period of adjustment or strategic financial restructuring before recovery.

The financial data reveals significant growth and notable fluctuations in the equity and return on equity (ROE) metrics over the analyzed periods.

Shareholders' Equity (Reported and Adjusted)

Both reported and adjusted shareholders' equity exhibit a generally upward trend, with reported equity increasing from approximately 12.2 billion USD in early 2020 to nearly 79.3 billion USD by early 2025. Adjusted shareholders' equity follows a similar trajectory, rising from about 11.6 billion USD to roughly 74.1 billion USD over the same timeframe. The adjusted values consistently remain slightly below the reported figures, reflecting adjustments likely related to goodwill or other intangible assets. Notably, there are periods of accelerated growth, particularly from 2023 onwards, where the equity nearly doubles, indicating substantial capital accumulation or retained earnings in recent years.

Return on Equity (ROE)

The ROE metrics both reported and adjusted show considerable variability but maintain an overall intensifying upward pattern. Reported ROE starts at 22.91% in 2020, increases to a peak of 36.65% in 2022, dips in 2023 to 19.76%, and then surges to exceptionally high levels of 69.24% in 2024 and 91.87% in 2025. Adjusted ROE follows a parallel trend but with generally higher percentages, starting at 24.13% in 2020, peaking at 43.8% in 2022, dipping to 24.64% in 2023, and then sharply rising to 77.2% and 98.3% in the final two years. The steep increases in ROE during the last two years suggest substantial improvements in profitability relative to equity, potentially driven by increased net income or more efficient use of equity capital.

Insights and Patterns

The divergence between reported and adjusted figures, while consistently present, remains proportionally stable, indicating consistent adjustments applied across periods. The marked surge in both equity and ROE in the later years reflects strong operational performance or capital management during those periods. The temporary decline in 2023, particularly in ROE, could suggest transient challenges or strategic investments affecting earnings but seemingly recovered promptly. Overall, the data points to a strengthening financial position with improving returns for shareholders, especially highlighted by the significant ROE growth toward the end of the analyzed timeline.

The financial data indicates a consistent upward trend in both reported and adjusted total assets over the six-year period from January 2020 to January 2025. Reported total assets have increased sharply from $17,315 million in 2020 to $111,601 million in 2025, representing more than a sixfold growth. Adjusted total assets, which exclude goodwill adjustments, show a similar pattern, rising from $16,697 million to $106,413 million over the same timeframe. This demonstrates substantial asset growth with a slight difference between reported and adjusted figures, possibly due to increasing goodwill allocations over time.

Return on Assets (ROA) for both reported and adjusted data reveals notable fluctuations but an overall increasing trend, especially in the last two years. The reported ROA started at 16.15% in 2020, dipped slightly to 15.05% in 2021, then surged to 22.07% in 2022. However, it experienced a decline in 2023 to 10.61% before markedly jumping to 45.28% in 2024 and further to 65.3% in 2025. Adjusted ROA follows a similar trajectory, beginning higher at 16.75% in 2020 and peaking at 24.48% in 2022, then declining to 11.87% in 2023. Subsequently, it rises significantly to 48.55% in 2024 and 68.49% in 2025, consistently exceeding the reported ROA figures in the majority of years.

Overall, the increasing total assets alongside rising ROA values in the latter years indicate enhanced efficiency in asset utilization and profitability. The adjustments for goodwill relatively decrease the asset base, resulting in slightly higher adjusted ROA compared to reported figures. This suggests that the company’s core operations are driving profitability improvements independently of goodwill valuations. The mid-period dip in ROA could imply temporary operational challenges or investment phases, but the recovery and substantial growth in the most recent years point to robust financial performance and effective management of assets.