NVIDIA Corp. (NASDAQ:NVDA)

Asset Turnover

The reported total asset turnover shows a fluctuating pattern with a decrease from 0.63 in early 2020 to 0.58 in 2021, followed by a modest recovery and subsequent growth to 1.17 by 2025. The adjusted figures mirror this trend but consistently present slightly higher ratios, suggesting improvements in asset utilization efficiency over the period, particularly in the later years where a marked increase is observed.

Current Ratio

The reported current ratio declines sharply from 7.67 in 2020 to 4.09 in 2021, then oscillates before settling around 4.44 in 2025. Adjusted current ratios follow a similar trajectory but remain higher at each point, indicating variations in working capital adjustments. The overall trend suggests a stabilization of liquidity at moderate levels after an initial high, reflecting changes in short-term asset and liability management.

Debt Ratios

The reported debt to equity ratio increases from 0.16 in 2020 to 0.50 in 2023, then declines to a low of 0.11 by 2025. Adjusted ratios show a similar trend but with slightly higher values. Debt to capital ratios exhibit comparable movements, rising to 0.33 and then dropping to 0.10 in the same timeframe. These patterns imply a period of increased leverage followed by a significant reduction, indicating a strategic deleveraging or improved equity base in the most recent years.

Financial Leverage

Reported financial leverage increases from 1.42 in 2020 to a peak of 1.86 in 2023 and decreases to 1.41 by 2025. Adjusted figures reveal a similar upward trend and subsequent decline. This aligns with the observed changes in debt ratios, suggesting that the company’s capital structure experienced heightened leverage before returning to more conservative levels.

Profitability Margins

The reported net profit margin exhibits significant volatility, rising from 25.61% in 2020 to 36.23% in 2022, then declining sharply to 16.19% in 2023, followed by a strong rebound to 55.85% in 2025. Adjusted margins reflect a similar trajectory but are consistently lower during the periods of decline, particularly in 2023. This indicates variable profitability with a substantial improvement in the final years, potentially driven by operational efficiency or favorable market conditions.

Return on Equity (ROE)

Reported ROE shows a rising trend from 22.91% in 2020 to 36.65% in 2022, dipping to 19.76% in 2023, then surging to 91.87% by 2025. Adjusted ROE values follow the same pattern but are lower during the mid-period slump and higher in the recovery phase. The marked increase in ROE towards the end reflects exceptional returns to shareholders, possibly due to enhanced profitability combined with moderate leverage.

Return on Assets (ROA)

Reported ROA follows a pattern similar to ROE, increasing to 22.07% in 2022, decreasing to 10.61% in 2023, and sharply rising to 65.30% by 2025. Adjusted ROA values are consistently lower during the decline phase but surpass the reported figures at the end, reinforcing the narrative of improved asset utilization and profitability in the most recent years.

The annual financial data reveals a consistent and significant growth trend in both revenue and total assets over the six-year period examined. Revenue increased markedly from $10,918 million in early 2020 to $130,497 million in early 2025, representing a more than twelvefold increase. This growth trend is mirrored in adjusted revenue figures, which also show a similar pattern of increase over the years.

Total assets similarly demonstrate substantial expansion, rising from $17,315 million in 2020 to $111,601 million in 2025. Despite a slight decline reported in 2023 relative to the previous year, the overall trajectory remains upward, indicating asset growth that supports the rising revenue. Adjusted total assets follow a comparable pattern, though they consistently register slightly lower values than reported total assets.

The reported total asset turnover ratio, which measures revenue generated per unit of assets, exhibits variability early in the period but trends upward significantly in the later years. Starting at 0.63 in 2020, the ratio dipped slightly to 0.58 in 2021, then fluctuated moderately before accelerating to 1.17 by 2025. This signifies an improving efficiency in using assets to generate revenue over the long term. The adjusted total asset turnover ratio reinforces this observation, increasing from 0.65 in 2020 to 1.30 in 2025, indicating enhanced operational efficiency when adjusted figures are considered.

Overall, the data suggests strong expansion in business scale accompanied by increasing asset utilization efficiency. The acceleration in asset turnover ratios toward the end of the period signals improved productivity and potentially better management of resources in generating revenue, contributing positively to financial performance.

Revenue and Adjusted Revenue

Bilateral increase from approximately $11 billion to over $130 billion, indicating significant growth.

Total Assets and Adjusted Total Assets

Steady asset growth with a slight dip around 2023, followed by sharp increases leading to over $111 billion reported and $100 billion adjusted by 2025.

Asset Turnover Ratios (Reported and Adjusted)

Initial fluctuations with a notable upward trend in later years, reaching above 1.1 in reported and 1.3 in adjusted turnover, reflecting improved asset efficiency.

Current Assets Trend

Current assets exhibit a generally increasing pattern over the observed period. Beginning at 13,690 million USD in early 2020, there is a noticeable increase to 28,829 million USD by early 2022. Despite a decline to 23,073 million USD in early 2023, current assets subsequently rise significantly, reaching 44,345 million USD in early 2024 and further accelerating to 80,126 million USD in early 2025.

Current Liabilities Trend

Current liabilities follow an upward trajectory through the entire period, starting from 1,784 million USD in 2020 and increasing consistently to 18,047 million USD by early 2025. This increase is steady and without any periods of decline, indicating a growing obligation profile.

Reported Current Ratio Analysis

The reported current ratio, calculated as current assets divided by current liabilities, fluctuates noticeably across the years. It starts at a high ratio of 7.67 in early 2020, drops sharply to 4.09 in 2021, then rebounds to 6.65 in 2022. This is followed by a decline to 3.52 in 2023. In the last two years, it improves again to 4.17 and 4.44 respectively, indicating some recovery in short-term liquidity but with considerable volatility.

Adjusted Current Assets and Liabilities

The adjusted figures closely mirror the reported values but show slightly higher current ratios each year. Adjusted current assets increase similarly, from 13,692 million USD to 80,130 million USD, while adjusted current liabilities also rise but remain marginally lower than reported figures each year, suggesting some reclassification or exclusion of certain liabilities to better reflect liquidity.

Adjusted Current Ratio Insights

The adjusted current ratio consistently remains above the reported current ratio, ranging from a high of 8.41 in 2020 to 5.03 in 2025. Similar to the reported ratio, it shows fluctuations but maintains a stronger liquidity stance. This suggests a generally healthy short-term financial position when adjustments are considered, despite volatility in reported measures.

Overall Observations

Over the six-year span, both assets and liabilities have grown substantially, with assets growing faster than liabilities particularly in the last two years. The liquidity ratios exhibit fluctuations but trend towards stabilizing at a reasonable level above 4 in recent years according to reported data, and above 5 considering adjustments. This points to improved ability to cover short-term obligations over time, although earlier years show periods of weaker liquidity management.

The financial data reflects notable fluctuations in debt and equity levels over the six-year period, revealing evolving capital structure dynamics.

Total Debt

Total debt increased sharply from $1.991 billion in 2020 to a peak of $10.953 billion in 2023, indicating a substantial rise in leverage. However, this trend reversed in subsequent years, with total debt declining to $8.463 billion by 2025, suggesting deleveraging efforts.

Shareholders’ Equity

Shareholders’ equity showed a consistent upward trajectory, growing from $12.204 billion in 2020 to an exceptional $79.327 billion by 2025. Despite a dip from $26.612 billion in 2022 to $22.101 billion in 2023, the subsequent increase to $42.978 billion in 2024 and further to $79.327 billion in 2025 reflects strong equity growth, potentially driven by retained earnings or capital infusion.

Reported Debt to Equity Ratio

This ratio rose from 0.16 in 2020 to a high of 0.5 in 2023, indicating increasing leverage relative to equity. Following this peak, the ratio declined sharply to 0.11 by 2025, demonstrating a significant reduction in debt relative to equity in the latter years.

Adjusted Total Debt

Adjusted total debt mirrored the total debt trend but at higher absolute levels, moving from $2.643 billion in 2020 up to $12.031 billion in 2023 before decreasing to $10.270 billion in 2025. This adjustment reveals that on a more comprehensive basis, debt peaked similarly before reducing moderately in the last two years.

Adjusted Shareholders’ Equity

The adjusted equity figures follow a pattern comparable to reported equity, albeit slightly lower. Starting at $11.903 billion in 2020, adjusted equity dipped from $26.188 billion in 2022 to $19.611 billion in 2023 but then surged to $72.341 billion by 2025, highlighting substantial equity enhancement over time.

Adjusted Debt to Equity Ratio

The adjusted leverage ratio increased from 0.22 in 2020 to a peak of 0.61 in 2023, indicating the highest relative debt burden during the period when considering adjustments. It then declined significantly to 0.14 by 2025, reflecting improved leverage management and stronger equity levels.

Overall, the period is characterized by an initial phase of increasing leverage with rising debt levels until 2023, followed by a strategic reversal with debt reduction and robust equity growth through 2025. This shift resulted in a substantially improved debt-to-equity profile, implying stronger financial stability and lower risk as of the most recent year analyzed.

Total Debt

The total debt exhibited a marked increase from 1991 million USD in early 2020 to a peak of 10953 million USD by early 2023. Following this peak, a consistent decline is observed, reaching 8463 million USD by early 2025.

Total Capital

Total capital showed a steady upward trend overall, beginning at 14195 million USD in 2020 and rising significantly to 87790 million USD by 2025. Notably, there was a temporary dip in 2023, where capital decreased to 33054 million USD from a preceding high of 37558 million USD.

Reported Debt to Capital Ratio

This ratio rose from 0.14 in 2020 to 0.33 in 2023, indicating increased leverage during this period. Subsequently, the ratio decreased substantially to 0.10 by 2025, suggesting a shift towards lower leverage or improved capital structure.

Adjusted Total Debt

Adjusted total debt mirrored the recorded total debt trend, starting at 2643 million USD in 2020, peaking at 12031 million USD in 2023, and then receding to 10270 million USD in 2025. The higher adjusted debt values relative to reported debt imply inclusion of additional liabilities or accounting adjustments.

Adjusted Total Capital

Adjusted capital showed growth from 14546 million USD in 2020 to 82611 million USD in 2025, with a dip in 2023 to 31642 million USD before recovery. These movements are consistent with those observed in total capital but indicate adjustments affecting the capital base.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased from 0.18 in 2020 to a maximum of 0.38 in 2023, higher than the reported ratio, reflecting greater leverage when accounting for adjustments. After 2023, the ratio decreased sharply to 0.12 by 2025, denoting reduced leverage.

Total assets

Total assets exhibit a substantial upward trajectory, increasing from 17,315 million USD in early 2020 to 111,601 million USD in early 2025. This reflects more than a sixfold growth over the five-year period, with notable acceleration between 2023 and 2025.

Shareholders’ equity

Shareholders’ equity follows a similar upward trend, rising from 12,204 million USD in 2020 to 79,327 million USD in 2025. Despite some fluctuations, including a decline in 2023 relative to 2022, equity growth strongly aligns with the expansion of total assets, albeit at a somewhat slower pace in certain years.

Reported financial leverage

The reported financial leverage ratio shows moderate variability, beginning at 1.42 in 2020, peaking at 1.86 in 2023, and declining back to 1.41 by 2025. This indicates a temporary increase in the use of debt or liabilities relative to equity around 2023, followed by a reduction to near initial leverage levels by 2025.

Adjusted total assets

Adjusted total assets follow the same directional pattern as total assets, moving from 16,769 million USD in 2020 to 100,626 million USD in 2025. The scaling is consistent, reflecting adjustments that slightly lower the absolute values compared to reported totals, but preserve the overall growth dynamic.

Adjusted shareholders’ equity

Similarly, adjusted shareholders’ equity increases from 11,903 million USD in 2020 to 72,341 million USD in 2025. The adjustments slightly diminish equity values relative to reported figures, with trends closely mirroring the fluctuations and growth seen in shareholders’ equity.

Adjusted financial leverage

The adjusted financial leverage ratio shows a pattern comparable to reported leverage, beginning at 1.41 in 2020, increasing to a peak of 1.93 in 2023, and then decreasing to 1.39 by 2025. This suggests that the company's leverage position, when adjusted for specific factors, experienced higher leverage pressures in 2023 before reverting to a more conservative level.

Over the analyzed periods, several key financial metrics exhibit notable trends. Revenue demonstrates a consistent and substantial upward trajectory, increasing from approximately US$10.9 billion in early 2020 to over US$130 billion by early 2025. This significant growth reflects strong top-line expansion during the period.

Net income follows a similar pattern, rising markedly from US$2.8 billion in 2020 to nearly US$73 billion in 2025. However, the progression is less linear than revenue, with a peak in 2022 at around US$9.8 billion followed by a temporary decline in 2023. Subsequently, net income experiences a dramatic increase in the last two years of the period analyzed, reaching its highest value in 2025.

Profitability, measured by the reported net profit margin, varies more distinctly. Starting at about 25.6% in 2020, it improves slightly by 2021 and then peaks at 36.2% in 2022. Afterward, the margin drops significantly to 16.2% in 2023 before surging to nearly 56% in 2025. This indicates fluctuations in profitability efficiency, with a remarkable improvement indicated in the final years.

Adjusted financial figures show a generally consistent pattern with reported numbers, suggesting that adjustments have a limited impact on the overall trends. Adjusted net income rises from approximately US$2.9 billion in 2020 to nearly US$70 billion in 2025, with a temporary decline in 2023. Adjusted revenue increases steadily from around US$11 billion in early 2020 to over US$130 billion by 2025, slightly higher than reported revenue figures. The adjusted net profit margin shows a lower level in 2023 (8.4%) than the reported margin, but otherwise follows a similar pattern of growth, culminating in over 53% by 2025.

In summary, the financial data reveal strong revenue growth accompanied by substantial gains in net income and profitability, despite a brief downturn around 2023. Both reported and adjusted metrics indicate enhanced operational efficiency and profit margins toward the latter part of the period reviewed.

Net Income

Net income showed a general upward trend over the periods analyzed, increasing from $2,796 million in 2020 to $72,880 million in 2025. There was a notable spike in 2022, reaching $9,752 million, followed by a decline to $4,368 million in 2023. Subsequently, net income surged significantly in 2024 and 2025, indicating strong profitability growth in the most recent years.

Shareholders’ Equity

Shareholders’ equity also demonstrated consistent growth, rising from $12,204 million in 2020 to $79,327 million in 2025. The growth was relatively steady except for a slight dip in 2023 before increasing sharply again in 2024 and 2025. This pattern suggests strengthening financial stability and increased capital base over the period.

Reported Return on Equity (ROE)

The reported ROE showed considerable variability but an overall increasing trajectory. Starting at 22.91% in 2020, it rose to 36.65% in 2022 before declining to 19.76% in 2023. Subsequently, it increased dramatically, reaching 91.87% in 2025. Such fluctuations indicate varying efficiency in generating profits from equity, with significant improvement in the latest years.

Adjusted Net Income

Adjusted net income trends closely mirrored those of net income, starting at $2,887 million in 2020 and reaching $69,864 million in 2025. The adjusted figures showed a notable decline in 2023 compared to 2022, followed by a sharp recovery and substantial growth thereafter. This suggests that adjustments had a material impact but did not alter the overall growth pattern.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity increased steadily from $11,903 million in 2020 to $72,341 million in 2025, with a pattern similar to the reported shareholders’ equity. The slight reduction in 2023 was followed by strong growth in the subsequent years, reinforcing the trend of increasing equity base after adjustments.

Adjusted Return on Equity (ROE)

The adjusted ROE exhibited a pattern similar to the reported ROE, starting at 24.25% in 2020 and fluctuating over the years. It peaked at 35.86% in 2022, dropped sharply to 11.62% in 2023, and then rose markedly to 96.58% in 2025. These variations highlight the impact of adjustments on profitability metrics and emphasize an overall strengthening ability to generate returns from equity in later periods.

The financial data reflect a dynamic performance trajectory over the periods analyzed. Net income exhibits notable fluctuations with a general upward trend, peaking significantly in the latest period. Total assets show consistent growth, indicating expanding operational scale or investment.

Net Income

Starting from US$2,796 million in early 2020, net income experienced an increase to US$4,332 million by early 2021, followed by a sharp rise to US$9,752 million in early 2022. A notable decline occurred in early 2023, dropping to US$4,368 million, but this was succeeded by substantial growth reaching US$29,760 million in early 2024 and further escalation to US$72,880 million in early 2025.

Total Assets

Total assets demonstrated steady growth from US$17,315 million in 2020 to US$28,791 million in 2021. Growth accelerated to US$44,187 million in early 2022, with a slight dip in early 2023 to US$41,182 million. Thereafter, assets increased markedly to US$65,728 million in 2024 and further to US$111,601 million in 2025, reinforcing a trend of significant asset base expansion over time.

Reported Return on Assets (ROA)

The reported ROA initially showed a peak of 22.07% in early 2022 after a decline from 16.15% in 2020 to 15.05% in 2021. This was followed by a substantial drop to 10.61% in 2023, then a striking recovery with very high returns of 45.28% in 2024 and 65.3% in 2025, suggesting improved efficiency in asset utilization in the most recent years.

Adjusted Net Income

The adjusted net income aligns closely with net income in value and trend, beginning at US$2,887 million in 2020. It rose to US$4,327 million in 2021 and US$9,391 million in 2022, but unlike the reported net income, it dipped more sharply to US$2,278 million in 2023. Subsequently, it surged to US$28,330 million in 2024 and further to US$69,864 million in 2025, indicating increasing underlying profitability after adjustments.

Adjusted Total Assets

Adjusted total assets grew from US$16,769 million in 2020 to US$27,989 million in 2021, continuing to US$42,969 million in 2022. A reduction to US$37,790 million occurred in 2023, however it rebounded to US$59,651 million in 2024 and reached US$100,626 million in 2025, mirroring the overall growing asset base trend on an adjusted basis.

Adjusted ROA

Adjusted ROA demonstrates variability, starting at 17.22% in 2020, slightly declining to 15.46% in 2021, then increasing to 21.86% in 2022. A pronounced fall to 6.03% in 2023 suggests a temporary contraction in asset profitability. This was followed by an impressive rise to 47.49% in 2024 and 69.43% in 2025, paralleling the trend in reported ROA and indicating enhanced efficiency and profitability after adjustments in recent periods.

In summary, the data reveal a generally robust growth in both net income and total assets, accompanied by significant improvements in asset profitability, especially in the most recent two periods. The temporary declines observed around the 2023 period appear to be short-lived interruptions in an otherwise strong upward trajectory. The adjusted figures reinforce the overall trend of increasing profitability and asset growth, with adjusted returns on assets signaling improved operational performance after accounting for adjustments.