NVIDIA Corp. (NASDAQ:NVDA)

The financial data reveals several noteworthy trends in the company's performance over the six-year period analyzed. A general pattern of growth and fluctuation is evident in key financial indicators, with notable developments in profitability, capital structure, and economic value creation.

Net Operating Profit After Taxes (NOPAT)

The NOPAT shows a significant overall increase from 2020 to 2025. Beginning at $2,792 million in 2020, it rose steadily to $9,602 million in 2022, experienced a decline in 2023 to $2,334 million, but then surged dramatically to $27,819 million in 2024 and further to $68,707 million in 2025. This pattern indicates periods of both contraction and substantial expansion in operating profitability.

Cost of Capital

The cost of capital remained relatively stable throughout the period, fluctuating narrowly around 21.3% to 21.7%. The consistency of this rate suggests stable market or internal financing conditions, with a slight upward trend in the later years to 21.68% in 2025.

Invested Capital

Invested capital has shown continuous growth over the timeframe, increasing from $14,224 million in 2020 to $47,433 million in 2025. The growth is steady each year, with notable acceleration between 2023 and 2025, reflecting significant capital deployment which may have supported expansion initiatives or asset acquisitions.

Economic Profit

The economic profit data indicates variability in value creation. It started negative at -$259 million in 2020, turned positive to $1,612 million in 2021, and peaked at $5,739 million in 2022. However, 2023 saw a sharp reversal to a negative $2,236 million, followed by exceptional growth to $21,087 million in 2024 and $58,425 million in 2025. This volatility suggests periods of value destruction followed by substantial value creation, likely linked to changes in operational efficiency and invested capital returns relative to the cost of capital.

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.

The data reveals significant fluctuations and an overall growth trend in the economic performance metrics over the analyzed periods. A detailed examination of the economic profit, invested capital, and economic spread ratio indicates the following patterns and insights:

Economic Profit

The economic profit exhibits substantial volatility, starting with a negative value of -259 million USD in early 2020. It transitions to positive territory in 2021, reaching 1,612 million USD, and continues to grow sharply to 5,739 million USD in 2022. However, in 2023 there is a pronounced decline to -2,236 million USD, indicating a temporary setback or increased expenses/losses. This is followed by a dramatic recovery and surge in economic profit, rising to 21,087 million USD in 2024 and further to 58,425 million USD in early 2025. This pattern suggests periods of both challenges and robust recovery, with an impressive upward trajectory in the most recent years.

Invested Capital

The invested capital shows a generally increasing trend across the years. Starting at 14,224 million USD in early 2020, it slightly decreased to 13,232 million USD in 2021, then increased significantly to 18,075 million USD in 2022 and further to 21,396 million USD in 2023. The growth accelerates thereafter, reaching 31,144 million USD in 2024 and 47,433 million USD in 2025. This steady rise in invested capital indicates ongoing investments, expansion, or asset accumulation over the periods analyzed.

Economic Spread Ratio

The economic spread ratio, which measures the return on invested capital relative to costs, follows a pattern similar to economic profit but with even more pronounced changes. From a negative spread of -1.82% in 2020, it jumps to 12.19% in 2021 and significantly increases to 31.75% in 2022. This positive momentum is interrupted in 2023 with a negative spread of -10.45%, aligning with the negative economic profit in the same period. Subsequently, the ratio sees an exceptional increase to 67.71% in 2024 and then nearly doubles to 123.17% in 2025. This indicates not only improved efficiency and profitability of invested capital but also an extraordinary enhancement of returns in recent years.

Overall, the data depicts considerable economic profit volatility correlated with shifts in invested capital and economic spread ratio. Despite a downturn in early 2023, the company demonstrates a strong capacity for recovery and growth, with substantial improvements in profitability and capital efficiency as reflected in the 2024 and 2025 figures. The increasing scale of invested capital alongside rising economic spreads suggests strategic investment decisions are generating increasingly favorable financial returns.

The financial data illustrates significant fluctuations and overall growth in the company's performance over the six-year period under review.

Economic Profit

The economic profit demonstrates notable variability, beginning with a negative value of -259 million US dollars in the earliest year, followed by a strong recovery to 1,612 million US dollars in the next year. This upward trend continues sharply, reaching 5,739 million US dollars before declining again to -2,236 million US dollars. Subsequently, there is a substantial increase to 21,087 million US dollars, culminating in a peak of 58,425 million US dollars in the most recent year. This irregular pattern indicates volatile profitability with a recent substantial improvement.

Adjusted Revenue

Adjusted revenue shows consistent and rapid growth throughout the entire period. Starting at 10,981 million US dollars, the revenue increases steadily each year, nearly doubling between 2023 and 2024 from 27,044 million to 61,687 million US dollars, and more than doubling again to 130,973 million US dollars in the last reported year. This strong upward trajectory highlights robust revenue expansion.

Economic Profit Margin

The economic profit margin reflects the variability seen in economic profit but in relative terms. It starts negatively at -2.36%, rises sharply to 9.53% and then peaks at 21.28%. The margin then declines into negative territory at -8.27% before experiencing significant growth to 34.18%, and further to 44.61% in the final year. This indicates improved efficiency in generating economic profit relative to revenue over time, despite some downturns.

Overall, the data portrays a company facing periods of economic challenges but managing considerable revenue growth and returning to high profitability with an improving economic profit margin in recent years. The volatility in economic profit suggests underlying operational or market fluctuations that have been overcome as evidenced by the latest financial outcomes.