Common-Size Income Statement
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- Balance Sheet: Assets
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
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NVIDIA Corp., common-size consolidated income statement
Based on: 10-K (reporting date: 2026-01-25), 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).
The common-size income statement reveals significant shifts in the company’s profitability and expense management over the observed period. Revenue is consistently represented as 100% across all years. A notable trend is the fluctuation in cost of revenue, gross profit, and operating income, indicating dynamic changes in production costs and operational efficiency. Overall, the company demonstrates increasing profitability from 2021 to 2025, followed by a slight moderation in 2026.
- Cost of Revenue & Gross Profit
- Cost of revenue as a percentage of revenue decreased from 37.66% in 2021 to a low of 27.28% in 2023, before increasing to 28.93% in 2026. This suggests improved cost control or a shift in product mix towards higher-margin offerings during 2021-2023. Consequently, gross profit increased from 62.34% in 2021 to a peak of 72.72% in 2024, before settling at 71.07% in 2026. The increase in cost of revenue in 2024 and 2026 may indicate rising input costs or a change in sales composition.
- Operating Expenses
- Operating expenses exhibited a decreasing trend as a percentage of revenue, falling from 35.17% in 2021 to 10.69% in 2026. This reduction is primarily driven by declines in both research and development (from 23.53% to 8.57%) and sales, general and administrative expenses (from 11.63% to 2.12%). The acquisition termination cost in 2023, representing 5.02% of revenue, is a one-time event that impacted operating expenses for that year.
- Operating Income
- Operating income demonstrated substantial volatility. It rose significantly from 27.18% in 2021 to 54.12% in 2024, reflecting the combined effect of decreasing cost of revenue and operating expenses. While remaining high at 60.38% in 2026, it experienced a dip to 15.66% in 2023, likely due to the acquisition termination cost. This indicates a strong ability to convert revenue into operating profit, though subject to occasional, significant one-time charges.
- Non-Operating Items & Net Income
- Interest income and expense remained relatively stable as percentages of revenue, with interest income increasing slightly over time. Other income (expense), net, showed a marked increase from 0.02% in 2021 to 4.18% in 2026, contributing to overall profitability. Income tax expense as a percentage of revenue fluctuated considerably, becoming a benefit in 2023 and increasing to an expense in subsequent years. Net income mirrored the trend in operating income, increasing from 25.98% in 2021 to 55.85% in 2024, and remaining at 55.60% in 2026. This suggests that changes in operating performance are the primary driver of net income fluctuations.
In summary, the company experienced significant improvements in operational efficiency and profitability between 2021 and 2024, with a slight moderation in 2025 and 2026. The reduction in operating expenses, particularly research and development and administrative costs, played a crucial role in this improvement. While fluctuations exist due to one-time events and tax considerations, the overall trend indicates a strengthening financial position.