NVIDIA Corp. (NASDAQ:NVDA)

The financial data reveals significant fluctuations and growth trends across the analyzed periods.

Net Operating Profit After Taxes (NOPAT)

NOPAT demonstrates a general upward trajectory with notable volatility. Initial growth is seen from 2,792 million US$ in early 2020 to a peak of 9,602 million US$ in early 2022. This is followed by a sharp decline in early 2023 to 2,334 million US$, then an exceptional surge to 27,819 million US$ in early 2024, culminating at 68,707 million US$ by early 2025. This pattern reflects both cyclical variability and a strong expansion phase in the latter years.

Cost of Capital

The cost of capital remains relatively stable throughout the periods, fluctuating narrowly between 21.25% and 21.67%. This suggests a consistent capital expense environment without significant impacts from market conditions or changes in risk profile.

Invested Capital

Invested capital shows steady growth, rising from 14,224 million US$ in early 2020 to 47,433 million US$ in early 2025. Growth is notably accelerated from early 2023 onwards, indicating increased investment or asset accumulation to support expanding operations or strategic initiatives.

Economic Profit

Economic profit exhibits considerable volatility that mirrors the fluctuations in NOPAT and invested capital. It shifts from a negative 259 million US$ in early 2020 to a positive 5,739 million US$ by early 2022, then drops again to a loss of 2,236 million US$ in early 2023. A substantial recovery follows, rising sharply to 21,088 million US$ in early 2024 and further increasing to 58,427 million US$ in early 2025. These swings indicate periods of both underperformance and value creation relative to the cost of capital.

Overall, the company experiences phases of both contraction and robust expansion, with the most recent periods indicating exceptional financial performance and value generation supported by increased capital investment while maintaining a stable 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.

Economic Profit

The economic profit demonstrates significant volatility over the analyzed periods. Initially, there is a negative value of -259 million US dollars in 2020, followed by a substantial positive increase to 1,613 million in 2021 and further growth to 5,739 million in 2022. However, in 2023, the economic profit declines sharply into negative territory at -2,236 million. Notably, the subsequent two years exhibit remarkable recovery and expansion, with economic profit reaching 21,088 million in 2024 and surging to 58,427 million in 2025, indicating a strong upward trajectory in recent years.

Invested Capital

Invested capital shows a general expanding trend across the time frame. Starting from 14,224 million US dollars in 2020, there is a slight dip to 13,232 million in 2021. Following this, a period of consistent growth occurs: the invested capital increases to 18,075 million in 2022, 21,396 million in 2023, then experiences more accelerated growth to 31,144 million in 2024 and reaches 47,433 million in 2025. This steady rise implies ongoing capital investment and resource allocation to support business activities.

Economic Spread Ratio

The economic spread ratio mirrors the volatility seen in economic profit but on a percentage basis, reflecting the rate of return relative to cost of capital. It starts at a negative -1.82% in 2020, indicating value destruction. The ratio improves markedly to 12.19% in 2021 and further to 31.75% in 2022. There is an adverse reversal in 2023, with the ratio dropping to -10.45%, suggesting a period of diminished profitability or increased cost pressures. Subsequently, the metric rises dramatically to 67.71% in 2024 and then more than doubles to 123.18% in 2025, signaling significant efficiency gains and value creation in the latter years.

Economic Profit

The economic profit demonstrates considerable volatility across the evaluated periods. Starting from a negative value of -259 million US dollars in early 2020, it exhibited a strong recovery by 2021, reaching 1,613 million US dollars. This upward trend intensified in 2022, achieving 5,739 million US dollars. However, in 2023, economic profit declined sharply to -2,236 million US dollars, indicating a significant setback. The subsequent years 2024 and 2025 show a remarkable rebound, with economic profit rising dramatically to 21,088 million and 58,427 million US dollars, respectively.

Adjusted Revenue

Adjusted revenue exhibits a consistent upward trajectory over the entire period under review. There was a steady increase from 10,981 million US dollars in 2020 to 16,925 million in 2021, followed by a more pronounced growth to 26,965 million in 2022. The revenue slightly stabilized in 2023 at 27,044 million but surged markedly thereafter, reaching 61,687 million in 2024 and further doubling to 130,973 million in 2025. This pattern indicates sustained expansion in sales or operations over the medium to long term.

Economic Profit Margin

The economic profit margin shows a fluctuating yet generally positive trend. Beginning with a negative margin of -2.36% in 2020, the margin turned positive at 9.53% in 2021 and increased further to 21.28% in 2022. Conversely, the margin dropped back to a negative -8.27% in 2023, consistent with the decline observed in economic profit. Following this decline, the margin experienced significant recovery, climbing to 34.19% in 2024 and reaching an even higher 44.61% in 2025. This data suggests improved profitability in relation to revenue in the later periods after experiencing instability in prior years.