NVIDIA Corp. (NASDAQ:NVDA)

The financial data over multiple quarterly periods indicate several notable trends across the key performance metrics expressed as a percentage of revenue.

Cost of Revenue and Gross Profit

The cost of revenue shows variability, initially decreasing from around 41.6% to lows near 24%, then spiking to over 56% during a particular quarter before stabilizing around 25-30% in subsequent periods. Correspondingly, gross profit margins generally improve over time, reaching peaks above 78%, except for a notable dip coinciding with the spike in cost of revenue. This suggests improved cost control and efficiency on average, with one period reflecting extraordinary cost impacts.

Research and Development (R&D)

R&D expenses as a percentage of revenue display a declining trend over the analyzed quarters, moving from over 30% initially down to below 10% in more recent periods. This reduction may reflect either increased revenue bases diluting R&D percentages or actual decreases in R&D spending relative to revenue.

Sales, General and Administrative (SG&A)

SG&A expenses also show a consistent downward trajectory from nearly 12% of revenue to approximately 2-3% in later quarters. This efficiency gain could be indicative of streamlined operations or cost management measures implemented over time.

Operating Expenses and Income

Operating expenses fluctuate with a general decrease from about 42% to closer to 11-13%. Operating income correspondingly trends upwards significantly, advancing from approximately 16% to above 60%, with intermittent fluctuations. This reflects improved operating leverage and profitability enhanced by both reduced costs and favorable revenue scaling.

Interest Income and Expense

Interest income remains relatively low and somewhat stable, fluctuating between 0.1% and 2%, with a slight increase in some later periods, whereas interest expense progressively decreases from about 0.6% to below 0.15%. The net impact suggests improving financing cost conditions or debt reduction.

Other Income (Expense), Net

Other income/expenses show volatility, with some positive spikes and negative dips. Multiple entries with varying values indicate inconsistent non-operating impacts on revenue, from minor losses to notable gains that may affect net profitability sporadically.

Income Before Income Taxes and Net Income

Income before income taxes maintains a growth trend from roughly 17.5% to peaks exceeding 66%, with a few troughs in intermediate periods. Net income follows a similar pattern, rising from near 18% to above 57%, illustrating substantial improvement in overall profitability margins.

Income Tax Expense

Income tax as a percentage of revenue fluctuates widely, spanning negative and positive values. Negative percentages in some periods may indicate tax benefits or credits, while substantial positive values suggest tax expenses. There is notable variability in tax impact on net income, particularly in later quarters where tax expense grows more significant.

In summary, the data reflect a general trend of improving profitability, driven largely by declining costs in revenue generation, research and development, and administrative expenses. Operational efficiency has strengthened, as evidenced by increasing operating and net income margins. Financing costs have diminished, and while non-operating income/expenses show episodic variability, they have not hindered the upward earnings trajectory. Tax expense volatility warrants attention as it intermittently impacts net profitability levels.