NVIDIA Corp. (NASDAQ:NVDA)

The financial data indicates noteworthy fluctuations and trends in key profitability and capital measures over the analysis period.

Net Operating Profit After Taxes (NOPAT)

NOPAT experienced a general upward trajectory with intermittent variability. Starting at $2,792 million in early 2020, it rose significantly to $4,425 million by 2021 and nearly doubled in 2022 to $9,602 million. However, in 2023, there was a sharp decline to $2,334 million. This was followed by a dramatic increase to $27,819 million in 2024 and a further surge to $68,707 million in early 2025, indicating substantial profitability acceleration in the latter years.

Cost of Capital

The cost of capital remained relatively stable across the periods, fluctuating narrowly around 22%. It started at 21.97% in 2020 and showed a slight increase to 22.20% by early 2025. This stability suggests a consistent capital cost environment despite volatility in profitability measures.

Invested Capital

Invested capital demonstrated a steady increase over the years, suggesting ongoing capital investment or accumulation of assets. Beginning at $14,224 million in 2020, it initially dipped to $13,232 million in 2021 but rebounded and escalated significantly to $47,433 million by early 2025. This growth reflects expanding operations or asset base supporting the company's activities.

Economic Profit

Economic profit showed a highly volatile pattern. Negative economic profit was reported in 2020 (-$333 million) and 2023 (-$2,346 million), indicating periods where returns did not cover the cost of capital. Positive economic profit was noted in other years, escalating from $1,545 million in 2021 to a peak of $58,178 million in early 2025. The substantial jump starting in 2024 correlates with strong NOPAT growth and indicates value creation beyond capital costs during this period.

In summary, the data reveals that despite steady cost of capital, the company experienced substantial growth in invested capital and oscillations in profitability measures. Recent years, particularly 2024 and 2025, show pronounced improvements in profitability and economic value creation, signaling a significant enhancement in operational efficiency and returns relative to capital investment.

The financial data reveals significant fluctuations and overall growth in key profitability metrics over the observed periods.

Net Income

The net income shows a general upward trend from January 26, 2020, to January 26, 2025, starting at $2,796 million and increasing markedly to $72,880 million. A notable surge occurs between January 29, 2023 ($4,368 million) and January 28, 2024 ($29,760 million), followed by a further sharp increase to $72,880 million in the subsequent period. Despite a dip after January 30, 2022 ($9,752 million) down to $4,368 million by January 29, 2023, the overall trajectory is strongly positive.

Net Operating Profit After Taxes (NOPAT)

NOPAT values follow a similar pattern to net income, starting at $2,792 million in January 26, 2020 and increasing substantially by January 26, 2025 to $68,707 million. This metric also exhibits a decline from $9,602 million in January 30, 2022 to $2,334 million in January 29, 2023, before recovering dramatically to $27,819 million in January 28, 2024 and continuing to grow significantly in the final period.

Overall, the data indicates periods of volatility around early 2023, with decreases in profitability metrics, followed by a strong recovery and exceptional growth leading into 2024 and 2025. This suggests that while the company experienced some operational and financial challenges in the mid-period, it managed to capitalize on conditions or strategic initiatives leading to a substantial increase in profitability towards the end of the analysis window.

Income tax expense (benefit)

Over the analyzed periods, the income tax expense exhibits a volatile trend. Initially, it decreased from 174 million US dollars in early 2020 to 77 million in early 2021, followed by an increase to 189 million in early 2022. The figure then shifted to a negative value (-187 million) in early 2023, indicating a tax benefit during that year. Subsequently, there was a sharp and substantial increase to 4,058 million in early 2024, which further escalated to 11,146 million in early 2025, reflecting significantly rising tax expenses in the most recent years.

Cash operating taxes

Cash operating taxes demonstrate a consistent and pronounced upward trend throughout the period. Starting at 134 million US dollars in early 2020, the cash taxes increased steadily each year, reaching 390 million in 2021, 643 million in 2022, and 1,983 million in 2023. The upward trajectory accelerates substantially in the final years analyzed, with cash operating taxes rising to 6,430 million in early 2024 and then more than doubling to 15,316 million by early 2025. This indicates a growing cash tax outflow from operations over the years under review.

Total Reported Debt & Leases

The total reported debt and leases demonstrated a marked increase from 2,643 million USD in early 2020 to a peak of 12,031 million USD by early 2023, reflecting a significant rise in financial obligations over this period. Subsequently, a downward trend is observed, with the amount decreasing to 11,056 million USD in early 2024 and further to 10,270 million USD by early 2025. Despite this recent reduction, the debt level remains substantially elevated compared to the 2020 baseline.

Shareholders’ Equity

Shareholders’ equity exhibited strong and consistent growth throughout the timeframe. Starting at 12,204 million USD in early 2020, it increased to 16,893 million USD by early 2021, followed by a substantial surge to 26,612 million USD in early 2022. While a slight decline occurred in early 2023, falling to 22,101 million USD, equity then rose sharply to 42,978 million USD in 2024 and reached an impressive 79,327 million USD by early 2025. This upward trajectory indicates a significant accumulation of net assets and possibly improved retained earnings or capital inflows.

Invested Capital

Invested capital showed fluctuation early in the period, declining from 14,224 million USD in early 2020 to 13,232 million USD in early 2021 before ascending steadily to 18,075 million USD in early 2022. This growth continued, reaching 21,396 million USD in early 2023, followed by a notable increase to 31,144 million USD in 2024. The trend culminated with a substantial rise to 47,433 million USD by early 2025. This progression implies increased investment in operational assets or expansion activities over time.

Summary

Overall, the data reveal a strategy characterized by elevated leveraging during the initial years, followed by gradual deleveraging beginning in 2023. Concurrently, both shareholders’ equity and invested capital have grown robustly, with equity growth outpacing that of debt, indicating strengthening financial stability and capital base. The significant rise in invested capital aligns with the reported equity increase, suggesting sustained investment in growth and asset development. These patterns collectively point to an expansion phase supported by increased capital investments alongside active management of debt levels.

Economic Profit

The economic profit exhibited considerable volatility over the analyzed periods. It began with a negative value of -$333 million in early 2020, improved substantially to $1,545 million by early 2021, and increased further to $5,646 million in early 2022. However, this was followed by a significant decline to -$2,346 million in early 2023, before rebounding sharply to $20,926 million in early 2024 and reaching an even higher value of $58,178 million by early 2025. This pattern indicates substantial fluctuations in profitability with a strong upward trend emerging in the later periods.

Invested Capital

The invested capital showed a general increasing trend throughout the examined timeframe. It started at $14,224 million in early 2020, slightly decreased to $13,232 million in early 2021, then rose steadily each year, reaching $18,075 million in early 2022, $21,396 million in early 2023, $31,144 million in early 2024, and culminating at $47,433 million by early 2025. This growth suggests continuous capital investment and expansion over the years.

Economic Spread Ratio

The economic spread ratio fluctuated significantly during the period under review. It began negatively at -2.34% in early 2020, turned positive at 11.68% in early 2021, and increased markedly to 31.24% in early 2022, indicating improving returns on invested capital. A reversal occurred in early 2023, with a drop to -10.97%, signaling diminished economic profitability relative to invested capital. Subsequently, the ratio surged to 67.19% in early 2024 and further to 122.65% by early 2025, reflecting a substantial enhancement in financial efficiency and value generation.

The analysis of the annual financial data reveals notable fluctuations and a general upward trend in profitability, revenue, and profit margins over the period presented.

Economic Profit

The economic profit initially showed a negative value of -$333 million in early 2020, indicating an economic loss. This shifted to a positive and growing trend over the next two years, reaching $5,646 million by early 2022. However, there was a significant decline in 2023, with economic profit turning negative again at -$2,346 million. After this downturn, the company experienced a substantial recovery, with economic profit surging sharply to $20,926 million in early 2024 and further accelerating to $58,178 million in early 2025.

Adjusted Revenue

Adjusted revenue exhibited consistent year-over-year growth throughout the period. Starting from $10,981 million in early 2020, revenue increased steadily to $26,965 million by early 2022. The growth pace accelerated notably from 2023 onwards, with revenue expanding to $61,687 million in early 2024 and then more than doubling to $130,973 million by early 2025. This trend suggests strong top-line growth and expanding business operations.

Economic Profit Margin

The economic profit margin mirrored the trends observed in economic profit. The margin was negative at -3.03% in 2020, then improved to a positive 20.94% by early 2022. The margin suffered a setback in 2023, dropping to -8.68%, indicating decreased profitability relative to revenue. This was followed by a remarkable improvement in profitability, with margins rising to 33.92% in early 2024 and reaching 44.42% in early 2025. The rising margins in the last two years reflect improved efficiency and enhanced shareholder value creation.

Overall, the financial data demonstrate a recovery from early losses and a volatile year in 2023, followed by strong financial performance and profitability growth in recent years. Both revenue growth and margin improvement have contributed to substantial increases in economic profit, signaling effective business expansion and value generation.