Analysis of Investments
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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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
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
The financial data reveals significant growth trends over the reported periods. Both the reported net income and the investment adjusted net income show a substantial increase from 2020 to 2025, indicating strong financial performance.
- Reported Net Income
- The reported net income increased steadily from US$2,796 million in 2020 to US$9,752 million in 2022. A notable decline occurred in 2023, where net income dropped to US$4,368 million. However, a sharp reversal is observed thereafter, with the net income escalating dramatically to US$29,760 million in 2024 and further to US$72,880 million in 2025.
- Adjusted Net Income
- The adjusted net income closely follows the pattern of the reported net income, starting at US$2,804 million in 2020 and rising to US$9,736 million in 2022. It also dips to US$4,338 million in 2023 before a significant surge to US$29,840 million in 2024 and reaching US$72,881 million in 2025. The minimal difference between reported and adjusted values suggests very limited one-time or non-operational adjustments.
- Trend Analysis
- Overall, the data indicates a strong upward trajectory in profitability after a brief period of decline in 2023. The post-2023 growth is particularly remarkable, with net incomes growing by multiple folds, which may reflect improved operational efficiency, market expansion, or other favorable business conditions. The alignment between reported and adjusted net incomes confirms the consistency and reliability of earnings over the periods analyzed.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
NVIDIA Corp., adjusted profitability ratios
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Net Profit Margin
- The reported net profit margin exhibited notable fluctuations across the periods. It began at 25.61% in early 2020, slightly increasing to 25.98% in 2021. A significant rise to 36.23% occurred in 2022, followed by a sharp decline to 16.19% in 2023. Subsequently, there was a pronounced recovery, reaching 48.85% in early 2024 and further rising to 55.85% by early 2025. The adjusted net profit margin closely mirrored these trends with minimal variance, suggesting consistent adjustment practices.
- Return on Equity (ROE)
- Reported ROE showed a general upward trajectory with considerable variation. Starting from 22.91% in 2020, it increased to 25.64% in 2021 and then surged to 36.65% in 2022. However, it declined substantially to 19.76% in 2023 before experiencing a remarkable escalation to 69.24% in 2024 and further to 91.87% by 2025. Adjusted ROE values parallel the reported figures closely, indicating minimal differences post adjustments.
- Return on Assets (ROA)
- The ROA revealed similar variability. The reported ROA decreased from 16.15% in 2020 to 15.05% in 2021 but then increased to 22.07% in 2022. This was followed by a sharp drop to 10.61% in 2023. Subsequently, ROA displayed substantial improvement, reaching 45.28% in 2024 and 65.3% in 2025. Adjusted ROA values aligned closely with the reported ones, reinforcing the consistency between reported and investment-adjusted results.
- Overall Observations
- Across all analyzed profitability and return metrics, a pattern emerges of initial moderate growth, a peak in 2022, a notable decline in 2023, and a strong recovery leading to exceptional performance by 2025. The close alignment between reported and adjusted figures throughout the timeline suggests stability and reliability in adjustment methods applied to financial data. The substantial increases in profitability and return ratios in the latest periods may reflect improved operational efficiency, favorable market conditions, or effective strategic initiatives.
NVIDIA Corp., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × ÷ =
The analysis of the provided financial data over the six fiscal years reveals notable trends in reported and adjusted net income, as well as the corresponding net profit margins.
- Net Income Trends
- Both reported and adjusted net income exhibit a general upward trajectory over the period. Reported net income increased from US$2,796 million in the fiscal year ending January 26, 2020, to US$72,880 million by January 26, 2025. Adjusted net income follows a nearly identical pattern, starting at US$2,804 million and reaching US$72,881 million in the same respective periods.
- The data shows a significant spike in net income during the fiscal year ending January 28, 2024, where reported net income jumps to US$29,760 million from US$4,368 million the previous year, reflecting a substantial increase. This rise continues into the next period, with net income more than doubling again to over US$72 billion.
- Profit Margin Analysis
- Reported net profit margin also shows a rising trend overall but with notable fluctuations. It starts at 25.61% in 2020, peaks at 36.23% in 2022, then drops sharply to 16.19% in 2023. Following this decline, the margin surges considerably to 48.85% in 2024 and continues to increase to 55.85% by 2025.
- Adjusted net profit margins closely mirror the reported margins throughout the period, maintaining minor variations. Both reported and adjusted margins follow the same trend of initial growth, a mid-period dip, and subsequent strong recovery driving profitability to record highs.
- Overall Insights
- The consistent alignment between reported and adjusted figures indicates limited adjustments or anomalies within the net income data, suggesting stable accounting practices or minimal one-off items.
- The observed sharp increase in net income and profit margins in the latter years suggests successful operational leverage, improved pricing power, or cost management. The temporary profit margin decrease in 2023 could indicate a transitional phase or external factors influencing profit efficiency, which were effectively addressed in subsequent years.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × ÷ =
- Net Income Trends
- The reported net income displayed an overall upward trajectory from 2020 to 2025. Starting at $2,796 million in early 2020, the figure rose substantially to $43,880 million by January 2025. Notably, there was a significant spike between 2023 and 2024, where net income increased from approximately $4,368 million to $29,760 million, followed by another large increase reaching $72,880 million in 2025. Adjusted net income followed a closely similar pattern, indicating that adjustments made did not significantly alter the profitability figures throughout the periods.
- Return on Equity (ROE) Analysis
- The reported ROE exhibited fluctuations within the analyzed period. Initially, it increased from 22.91% in 2020 to a peak of 36.65% in 2022. However, it dropped sharply to 19.76% in 2023 before surging dramatically to 69.24% in 2024 and further to 91.87% in 2025. The adjusted ROE mirrored this pattern almost identically, suggesting that adjustments had a minimal impact on the company's equity efficiency metrics.
- Overall Financial Performance Insights
- The company showed substantial growth in profitability and equity efficiency over the six-year period. Both net income and ROE experienced marked increases, particularly in the last two years analyzed. This suggests a significant improvement in operational performance, capital utilization, or possibly favorable market conditions contributing to enhanced returns. The alignment between reported and adjusted figures indicates consistency in financial reporting and adjustment methodologies.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × ÷ =
Over the examined period, net income for the company demonstrated significant fluctuations with a general upward trajectory, particularly notable in the later years. Reported net income increased markedly from 2,796 million US dollars in early 2020 to 72,880 million US dollars by early 2025, despite a decline observed in 2023 where it fell to 4,368 million US dollars from its previous peak. Adjusted net income closely mirrored this trend, indicating minimal differences between reported and adjusted results throughout the years.
Return on Assets (ROA), both reported and adjusted, exhibited similar patterns. Initially, ROA values showed moderate percentages around 16% in early 2020 and slightly declined to approximately 15% in early 2021. A substantial rise followed in 2022, peaking at about 22%, before experiencing a significant dip to around 10.6% in early 2023. Starting in 2024, ROA increased sharply, reaching 45% and then surging further to approximately 65% in early 2025, indicating enhanced asset utilization efficiency despite the earlier volatility.
- Net Income Trends
- The company achieved strong net income growth over the five-year span, with a notable peak in 2025. The drop in 2023 suggests a temporary contraction, possibly linked to market or operational factors.
- Adjusted vs. Reported Income
- The close alignment between adjusted and reported net income implies consistency in accounting treatments without significant adjustments affecting reported profitability.
- Return on Assets Analysis
- ROA fluctuations indicate periods of varying asset efficiency. The dramatic increase from 2024 onwards suggests improved asset management or profitable investments enhancing returns.
- Overall Financial Performance
- The company shows strong financial performance with accelerating profitability and effective asset utilization in the later years, notwithstanding intermittent downturns in 2023.