NVIDIA Corp. (NASDAQ:NVDA)

The analysis of the quarterly financial ratios reveals notable trends and fluctuations across the observed periods.

Return on Assets (ROA)

The ROA shows an increasing trend starting from a value of 16.15% in the quarter ending January 26, 2020. It rose steadily, reaching a peak of 22.07% by the quarter ending May 1, 2022. Thereafter, the ratio exhibits some volatility with declines and recoveries, falling to 10.61% in the quarter ending April 30, 2023, then rapidly increasing to an all-time high of 65.69% in the quarter ending April 28, 2024. A slight decrease follows, settling at 61.29% by the quarter ending April 27, 2025. Overall, this indicates significant improvement in asset efficiency over the long term, with some short-term volatility.

Financial Leverage

Financial leverage ratios remained relatively stable throughout the periods. Starting from 1.44 in April 2019, the ratio experienced mild fluctuations, generally oscillating between 1.4 and 1.9. The highest leverage of 1.9 occurs in the quarter ending October 30, 2022, after which it declines gradually to 1.49 by April 2025. This suggests moderate use of debt financing without extreme leverage increases, indicating prudent capital structure management.

Return on Equity (ROE)

The ROE demonstrates a consistent upward trajectory over the majority of the observed period. From 22.91% in the quarter ending January 26, 2020, ROE rose steadily, surpassing 30% by mid-2021, and reaching 36.65% in May 2022. A decline ensues, bottoming near 19.55% in April 2023, but is followed by a strong recovery with ROE peaking at 95.71% by October 2024. Slight decreases are noted thereafter, ending at 91.57% by April 2025. This pattern indicates increasing profitability and efficiency in equity utilization over time, with significant gains in the later stages.

In summary, both profitability measures (ROA and ROE) exhibit substantial growth, particularly in recent quarters, signaling improved operational performance and effective equity deployment. The steady financial leverage suggests controlled risk exposure, supporting sustainable growth in returns. The volatility observed around mid-2022 to mid-2023 warrants attention as a period of performance fluctuation before the strong upward trend resumes.

The financial data indicate noteworthy trends in profitability, efficiency, leverage, and overall shareholder returns over the examined quarters.

Net Profit Margin

The net profit margin displays a general upward trajectory from the early quarters where data is available, starting around 25.61%, gradually increasing to a peak above 55% in the most recent periods before slightly declining to approximately 51.69%. This pattern suggests improving profitability and cost management over time, despite some fluctuations in the latest quarters.

Asset Turnover

The asset turnover ratio, indicative of asset utilization efficiency, shows gradual improvement throughout the periods. Early values are below 0.65 but rise consistently to exceed 1.1 in the latest quarters, reaching as high as 1.19. This implies enhanced efficiency in generating sales from assets, reflecting possibly better operational management or asset base optimization.

Financial Leverage

Financial leverage ratios remain relatively stable with mild fluctuations. Initially between 1.41 and 1.44 in early periods, the leverage increased to values near 1.9 in mid-periods, before declining modestly to around 1.41–1.49 in most recent quarters. This reflects a conservative approach to debt utilization without significant volatility, maintaining a moderate leverage profile.

Return on Equity (ROE)

ROE demonstrates a strong positive trend with substantial growth. Starting near 22.91%, it surges dramatically to exceed 90% in recent quarters, peaking at over 95%. This remarkable increase indicates highly effective use of shareholder equity to generate profits, potentially driven by the combined effect of rising profit margins, improved asset turnover, and moderate leverage.

Overall, the analysis suggests significant enhancements in operational efficiency and profitability, resulting in exceptional shareholder returns. The consistent rise in both asset turnover and profit margins supports this interpretation, while stable financial leverage indicates prudent financial policy amid growth. The latest slight downturn in net profit margin alongside sustained high ROE and asset turnover could warrant close monitoring to assess sustainability.

The analysis of the quarterly financial ratios reveals several notable trends in the company's performance over the covered periods.

Tax Burden

The Tax Burden ratio shows a general decline after peaking above 1.00 around early 2023. Initially stable near 0.94 to 0.98, it increased slightly beyond 1.00 during the first quarters of 2023, indicating occasional tax benefits or credits, before declining steadily to 0.87 by early 2025. This suggests a rise in effective tax expenses or reduced tax benefits in more recent quarters.

Interest Burden

This ratio remains consistently high and stable throughout the periods, close to or at 1.00 from around early 2023 onward. The minimal variation near unity indicates that interest expenses have been negligible or well managed relative to operating earnings over the entire timeframe.

EBIT Margin

There is a clear upward trend in EBIT Margin, starting moderately around the high 20% range in 2020, fluctuating with a low around 16% during late 2022 and early 2023, followed by a sharp increase post-mid-2023. Margins peak near 64%-65% toward late 2024, before a slight decline to about 60% in early 2025. This significant margin expansion reflects improved operational efficiency or pricing power in recent quarters.

Asset Turnover

The Asset Turnover ratio exhibits a rising trend, increasing steadily from about 0.51 in mid-2019 to exceed 1.10 by late 2024. This improvement indicates enhanced efficiency in using assets to generate revenue, with particularly notable gains after 2022, reaching levels more than double initial figures.

Financial Leverage

Financial Leverage shows moderate fluctuations without a clear sustained trend. Values range mostly between 1.4 and 1.9, with a peak near 1.9 in late 2022. The leverage declined gradually after early 2023 before stabilizing around 1.4 to 1.5 in early 2025. This stability reflects a relatively consistent mix of debt and equity financing.

Return on Equity (ROE)

The ROE follows a pattern largely mirroring EBIT Margin and Asset Turnover trends, moving from the low 20% range in early years to dramatic growth starting mid-2023. After a dip to roughly 20% in early 2023, ROE surged to peak values above 90% in late 2024, slightly retreating but remaining exceptionally high by early 2025. The increase suggests highly effective capital deployment and profitability improvements in recent periods.

Overall, the data indicates substantial operational and financial improvements starting around mid-2023, highlighted by increasing profitability margins, asset efficiency, and equity returns. The tax burden's reduction toward the end may suggest changing tax obligations or strategies. Interest expenses appear to remain minimal throughout, and leverage remains stable, suggesting prudent financial management amid growth.

The analysis of the quarterly financial data reveals discernible trends in net profit margin, asset turnover, and return on assets (ROA) over the periods reported.

Net Profit Margin

The net profit margin displayed a fluctuating but generally increasing trajectory. Starting near 25.61% in the first available quarter, it reached a low point around 16.19% in October 2022, indicating a period of margin compression. Subsequently, a strong upward trend emerged, peaking at 55.85% in October 2024 before experiencing a slight decline to 51.69% in April 2025. This suggests substantial improvements in profitability efficiency over time, with occasional downturns potentially tied to operational or market conditions.

Asset Turnover

Asset turnover began at 0.63 and demonstrated some periods of decrease, reaching a minimum of 0.51 mid-period, which indicates a temporary decline in how effectively assets were generating revenue. From mid-2022 onwards, a consistent upward trend was observed, culminating in a peak of around 1.19 by October 2024, followed by minor fluctuation to 1.17 in the final quarter. The overall increase signifies augmented efficiency in asset utilization, contributing positively to the company’s operational performance.

Return on Assets (ROA)

The ROA followed a pattern quite aligned with the other metrics. Initially recorded around 16.15%, it dipped to lower levels near 10.61% during late 2022, correlating with the period of reduced profit margin and asset turnover. A substantial recovery and increase ensued, reaching a peak of 65.69% in October 2024 before a slight retreat to 61.29% thereafter. The growth in ROA highlights enhanced overall asset profitability, reflecting improved management effectiveness and operational leverage across the periods analyzed.

In summary, the data depicts a company that experienced mid-term softness in profitability and asset efficiency metrics but achieved significant recovery and growth towards the later periods. The consistent improvements in net profit margin, asset turnover, and ROA indicate stronger profitability coupled with more effective asset utilization, suggesting robust financial health and efficiency enhancement initiatives during the timeframe.

The analysis of the quarterly financial ratios over the periods reveals several notable trends in the company's operational and financial efficiency metrics.

Tax Burden

The Tax Burden ratio demonstrates a relatively stable pattern around values slightly below 1.0 from April 2020 through January 2023, with small fluctuations ranging mostly between 0.87 and 1.05. There is a mild increase observed around early 2023, reaching above 1.0, followed by a decline back to 0.87 from late 2023 onward, indicating a reduction in tax expenses relative to income in more recent quarters.

Interest Burden

The Interest Burden ratio remains consistently high and stable, close to 1.0, across the recorded periods starting from April 2020. This suggests that the company incurs minimal interest expenses relative to its earnings before interest and taxes, maintaining strong operational earnings with limited impact from financing costs.

EBIT Margin

The EBIT Margin shows significant improvement over the time frame analyzed. From moderate margins of around 27% to 30% in 2020, the figure escalates sharply starting from mid-2023, eventually exceeding 60% in the latest periods. This trend indicates substantial enhancement in operational profitability, revealing effective cost management, pricing strategies, or product mix improvements that have favorably impacted earnings before interest and taxes.

Asset Turnover

Asset Turnover exhibits a gradual upward trajectory from approximately 0.5 in early periods to above 1.1 in the most recent quarters. This reflects an increased efficiency in utilizing assets to generate sales revenue. The continuous improvement suggests better asset management, increased sales volume, or both over time, indicating stronger operational effectiveness.

Return on Assets (ROA)

Return on Assets follows a rising course after initial fluctuations, moving from mid-teens percentages to values exceeding 60% in the latest quarters. This marked growth in ROA aligns with the trends observed in EBIT Margin and Asset Turnover, confirming that the company has significantly enhanced its overall profitability and efficiency in employing its asset base to generate net income.

In summary, the data portray a company that has progressively strengthened its operational performance and asset utilization, resulting in improved profitability metrics. While tax burden showed some variability, interest expenses remained minimal and stable, supporting the positive trends in earnings and returns. The combined increase in EBIT Margin and Asset Turnover strongly contributed to the robust growth in Return on Assets.

Tax Burden

The tax burden ratio first appears in the data starting from the period ending April 26, 2020, showing values generally close to 1.00 with a slight upward trend peaking at 1.05 in January 29, 2023. After this peak, a gradual decline is observed, bringing the ratio down to 0.87 by April 27, 2025. This indicates slight fluctuations in taxation impact on earnings, with a tendency toward stability near the range of 0.87 to 1.05 over the observed timeline.

Interest Burden

The interest burden ratio remains consistently high over the entire period for which data is available, starting at 0.98 in April 26, 2020, and steadily increasing toward 1.00 from October 29, 2023, onward. This consistency near unity suggests minimal impact of interest expenses on the company's earnings before tax, indicating low leverage costs or effective management of financing expenses.

EBIT Margin

The EBIT margin displays notable volatility but an overall upward trend across the periods. Beginning at 27.68% in April 26, 2020, it climbs steadily to a peak of 64.59% by October 27, 2024, before a slight decline to 59.86% by April 27, 2025. There is a marked dip in margin between May 1, 2022, and January 29, 2023, reaching a low of 16.47% but this is followed by a strong recovery and substantial growth through subsequent quarters. This pattern evidences periods of varying operating profitability, with recent quarters showing marked improvement.

Net Profit Margin

Similarly, the net profit margin follows a pattern aligned with the EBIT margin. Starting at 25.61% in April 26, 2020, it increases progressively to attain a maximum of 55.85% by October 27, 2024, with a minor correction to 51.69% thereafter. There is a noticeable reduction in profitability in the middle periods, particularly around mid-2022 to early 2023, with margins as low as 16.19%. The rebound and strong rise after this period suggest an enhancement in overall profitability, reflecting improved cost control or revenue growth factors beyond operating income, such as tax or interest effects.