Stock Analysis on Net
Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Adjusted Financial Ratios

Microsoft Excel LibreOffice Calc

Adjusted Financial Ratios (Summary)

NVIDIA Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.58 0.63 0.88 0.86 0.70 0.68
Adjusted 0.60 0.65 0.88 0.86 0.67 0.65
Liquidity Ratio
Current Ratio
Reported 4.09 7.67 7.94 8.03 4.77 2.57
Adjusted 4.44 8.41 8.66 8.59 5.08 3.04
Solvency Ratios
Debt to Equity
Reported 0.41 0.16 0.21 0.27 0.48 0.32
Adjusted 0.46 0.22 0.29 0.30 0.48 0.32
Debt to Capital
Reported 0.29 0.14 0.18 0.21 0.33 0.24
Adjusted 0.31 0.18 0.22 0.23 0.33 0.24
Financial Leverage
Reported 1.70 1.42 1.42 1.50 1.71 1.65
Adjusted 1.67 1.41 1.49 1.53 1.66 1.47
Profitability Ratios
Net Profit Margin
Reported 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Adjusted 25.57% 26.29% 33.06% 27.51% 23.55% 14.54%
Return on Equity (ROE)
Reported 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Adjusted 25.75% 24.25% 43.49% 36.35% 25.99% 13.99%
Return on Assets (ROA)
Reported 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%
Adjusted 15.46% 17.22% 29.22% 23.75% 15.67% 9.50%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. NVIDIA Corp.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. NVIDIA Corp.’s adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. NVIDIA Corp.’s adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. NVIDIA Corp.’s adjusted debt-to-capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
NVIDIA Corp.’s adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. NVIDIA Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. NVIDIA Corp.’s adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. NVIDIA Corp.’s adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

NVIDIA Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Activity Ratio
Total asset turnover1 0.58 0.63 0.88 0.86 0.70 0.68
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 16,925  10,981  11,786  9,693  6,633  4,972 
Adjusted total assets3 27,989  16,769  13,334  11,228  9,966  7,611 
Activity Ratio
Adjusted total asset turnover4 0.60 0.65 0.88 0.86 0.67 0.65

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Total asset turnover = Revenue ÷ Total assets
= 16,675 ÷ 28,791 = 0.58

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 16,925 ÷ 27,989 = 0.60

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. NVIDIA Corp.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 16,055  13,690  10,557  9,255  8,536  6,053 
Current liabilities 3,925  1,784  1,329  1,153  1,788  2,351 
Liquidity Ratio
Current ratio1 4.09 7.67 7.94 8.03 4.77 2.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 16,059  13,692  10,559  9,259  8,539  6,055 
Adjusted current liabilities3 3,615  1,628  1,219  1,078  1,682  1,995 
Liquidity Ratio
Adjusted current ratio4 4.44 8.41 8.66 8.59 5.08 3.04

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 16,055 ÷ 3,925 = 4.09

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 16,059 ÷ 3,615 = 4.44

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. NVIDIA Corp.’s adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 6,963  1,991  1,988  2,000  2,785  1,423 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Solvency Ratio
Debt to equity1 0.41 0.16 0.21 0.27 0.48 0.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 7,718  2,643  2,588  2,228  2,914  1,666 
Adjusted shareholders’ equity3 16,805  11,903  8,959  7,338  6,009  5,168 
Solvency Ratio
Adjusted debt to equity4 0.46 0.22 0.29 0.30 0.48 0.32

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 6,963 ÷ 16,893 = 0.41

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 7,718 ÷ 16,805 = 0.46

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. NVIDIA Corp.’s adjusted debt-to-equity ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 6,963  1,991  1,988  2,000  2,785  1,423 
Total capital 23,856  14,195  11,330  9,471  8,547  5,892 
Solvency Ratio
Debt to capital1 0.29 0.14 0.18 0.21 0.33 0.24
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 7,718  2,643  2,588  2,228  2,914  1,666 
Adjusted total capital3 24,523  14,546  11,547  9,566  8,923  6,834 
Solvency Ratio
Adjusted debt to capital4 0.31 0.18 0.22 0.23 0.33 0.24

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,963 ÷ 23,856 = 0.29

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 7,718 ÷ 24,523 = 0.31

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. NVIDIA Corp.’s adjusted debt-to-capital ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Solvency Ratio
Financial leverage1 1.70 1.42 1.42 1.50 1.71 1.65
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 27,989  16,769  13,334  11,228  9,966  7,611 
Adjusted shareholders’ equity3 16,805  11,903  8,959  7,338  6,009  5,168 
Solvency Ratio
Adjusted financial leverage4 1.67 1.41 1.49 1.53 1.66 1.47

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 28,791 ÷ 16,893 = 1.70

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 27,989 ÷ 16,805 = 1.67

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
NVIDIA Corp.’s adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Net profit margin1 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,327  2,887  3,896  2,667  1,562  723 
Adjusted revenue3 16,925  10,981  11,786  9,693  6,633  4,972 
Profitability Ratio
Adjusted net profit margin4 25.57% 26.29% 33.06% 27.51% 23.55% 14.54%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,332 ÷ 16,675 = 25.98%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 4,327 ÷ 16,925 = 25.57%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. NVIDIA Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Profitability Ratio
ROE1 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,327  2,887  3,896  2,667  1,562  723 
Adjusted shareholders’ equity3 16,805  11,903  8,959  7,338  6,009  5,168 
Profitability Ratio
Adjusted ROE4 25.75% 24.25% 43.49% 36.35% 25.99% 13.99%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 4,332 ÷ 16,893 = 25.64%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 4,327 ÷ 16,805 = 25.75%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. NVIDIA Corp.’s adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Profitability Ratio
ROA1 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 4,327  2,887  3,896  2,667  1,562  723 
Adjusted total assets3 27,989  16,769  13,334  11,228  9,966  7,611 
Profitability Ratio
Adjusted ROA4 15.46% 17.22% 29.22% 23.75% 15.67% 9.50%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,332 ÷ 28,791 = 15.05%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,327 ÷ 27,989 = 15.46%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. NVIDIA Corp.’s adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.