Stock Analysis on Net
Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

NVIDIA Corp., adjustment to net income

US$ in millions

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12 months ended: Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Net income (as reported) 4,332  2,796  4,141  3,047  1,666  614 
Add: Available-for-sale debt securities, net change in unrealized gain (loss) —  8  11  (4) (16) (8)
Net income (adjusted) 4,332  2,804  4,152  3,043  1,650  606 

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

NVIDIA Corp., adjusted profitability ratios

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Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Net Profit Margin
Reported net profit margin 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Adjusted net profit margin 25.98% 25.68% 35.44% 31.33% 23.88% 12.10%
Return on Equity (ROE)
Reported ROE 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Adjusted ROE 25.64% 22.98% 44.44% 40.73% 28.64% 13.56%
Return on Assets (ROA)
Reported ROA 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%
Adjusted ROA 15.05% 16.19% 31.24% 27.07% 16.77% 8.22%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. NVIDIA Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. NVIDIA Corp.’s adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. NVIDIA Corp.’s adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

NVIDIA Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Net profit margin1 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,332  2,804  4,152  3,043  1,650  606 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Adjusted net profit margin2 25.98% 25.68% 35.44% 31.33% 23.88% 12.10%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

2021 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,332 ÷ 16,675 = 25.98%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,332 ÷ 16,675 = 25.98%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. NVIDIA Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Profitability Ratio
ROE1 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,332  2,804  4,152  3,043  1,650  606 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Profitability Ratio
Adjusted ROE2 25.64% 22.98% 44.44% 40.73% 28.64% 13.56%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

2021 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 4,332 ÷ 16,893 = 25.64%

2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 4,332 ÷ 16,893 = 25.64%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. NVIDIA Corp.’s adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Profitability Ratio
ROA1 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 4,332  2,804  4,152  3,043  1,650  606 
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Profitability Ratio
Adjusted ROA2 15.05% 16.19% 31.24% 27.07% 16.77% 8.22%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,332 ÷ 28,791 = 15.05%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 4,332 ÷ 28,791 = 15.05%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. NVIDIA Corp.’s adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.