NVIDIA Corp. (NASDAQ:NVDA)

The analysis of the available quarterly financial data reveals notable trends in profitability and leverage metrics over the period from 2019 to 2025.

Return on Assets (ROA)

The ROA shows an overall increasing trend with some fluctuations along the timeline. Starting around 16.15% in the first available quarter of 2020, the ratio climbs gradually to a peak of approximately 65.69% in April 2024. This indicates a significant improvement in asset utilization to generate earnings. Despite slight decreases after the peak, the ROA maintains a high level above 60%, suggesting sustained efficiency gains in asset management towards the latter periods.

Financial Leverage

The financial leverage ratio remains relatively stable with moderate fluctuations throughout the observed quarters. Initial values near 1.44 in early 2019 slightly increase to around 1.9 by the end of 2022, followed by a gradual decline back to approximately 1.41 by mid-2025. This pattern points to a cautious approach to leverage, with momentary increases in debt usage possibly to finance growth or investments, before reverting to lower leverage ratios.

Return on Equity (ROE)

The ROE demonstrates a strong upward trajectory over the reported periods, beginning around 22.91% in early 2020 and rising sharply to a peak exceeding 95% between 2024 and 2025. This marked increase implies an enhanced ability to generate profits from shareholders' equity, potentially driven by improved operational performance, efficient asset management, and controlled leverage. Although minor declines are noted following the peak values, ROE remains extremely high relative to the earlier period.

Overall, the data indicate an improving profitability environment, with the company enhancing asset efficiency and equity returns substantially over time. Financial leverage is managed within a moderate range without excessive risk exposure. The substantial increases in ROA and ROE may reflect favorable market conditions, operational excellence, or strategic financial management during the analyzed periods.

The financial data indicates several notable trends in key performance ratios over the periods analyzed.

Net Profit Margin

The net profit margin shows a general upward trend with some fluctuations. Initial observations starting in April 2020 reveal margins around 25% to 28%, with a peak approximately at 36% in early 2022. Following this peak, there was a decline to the low teens by early 2023. Subsequently, the margin experienced a strong recovery, climbing steadily to reach levels above 55% by mid-2024, before slightly tapering but remaining above 50% toward mid-2025. This suggests improving profitability efficiency over time with periods of volatility likely influenced by operational or market factors.

Asset Turnover

Asset turnover begins at around 0.63 in early 2020, decreases to near 0.51 by mid-2020, and then generally trends upward. A steady increase is observed from early 2021 through mid-2025, culminating in values exceeding 1.1 by late 2024 and maintaining around 1.17 toward mid-2025. This rising trend indicates enhanced efficiency in generating sales from assets, reflecting possibly improved asset management or increased sales volumes relative to asset base.

Financial Leverage

Financial leverage ratios present more variability without a clear trend. Starting near 1.44 in early 2019, the ratio increases to peaks around 1.9 in late 2022, indicating higher use of debt or liabilities relative to equity during that period. Afterward, leverage declines gradually to approximately 1.4 by mid-2025, suggesting a reduction in reliance on financing or a strengthening of equity against liabilities. The fluctuations imply active management of capital structure responsive to operational needs or market conditions.

Return on Equity (ROE)

ROE demonstrates significant growth majority of the period, starting around 23% in early 2020, rising to a peak at 36.65% by mid-2022. A dip ensues, dropping to under 20% in early 2023. Notably, from that low point, ROE surges dramatically, exceeding 90% by late 2024 and stabilizing around mid-80% to mid-90% by mid-2025. This sharp increase reflects a substantial improvement in profitability relative to shareholder equity, possibly driven by margin expansions, asset turnover enhancements, or effective financial leverage management.

Overall, the data reflects growing profitability and operational efficiency, particularly evident in rising net profit margins and asset turnover. The variability in financial leverage suggests strategic adjustments in capital structure, while the substantial increase in ROE highlights enhanced value generation for shareholders in recent periods. Some volatility in margins and ROE in early 2023 may warrant further investigation to understand underlying causes.

The analyzed financial data exhibit several notable trends in profitability, efficiency, leverage, and return metrics over the observed periods.

Tax Burden

The tax burden ratio, available from the period ending April 26, 2020, initially remains relatively stable around 0.93 to 1.05, indicating consistent tax impact on earnings. However, starting from around the period ending January 29, 2023, a gradual decline occurs, stabilizing near 0.87 and slightly decreasing to 0.86 by July 27, 2025. This suggests a reduction in the proportion of income paid as tax in later periods.

Interest Burden

The interest burden ratio remains steady and close to unity throughout the recorded periods, varying narrowly around 0.94 to 1.00. There is a slight improvement trend towards a full ratio of 1.00 from January 28, 2024 onwards, implying diminishing interest expenses relative to earnings before interest and taxes, signifying better interest management or reduced debt cost impacts.

EBIT Margin

The EBIT margin displays a generally upward trajectory with fluctuations. Starting around 27-30% in early periods, the margin peaks with significant growth from May 2, 2021 onwards, reaching a maximum exceeding 64% in late 2024. A dip is visible around early 2023, down to approximately 16-18%, followed by a sharp recovery and subsequent gradual stabilization just below 62%, indicating improved operational profitability over time with some temporary contraction.

Asset Turnover

Asset turnover starts modestly at roughly 0.51-0.63, suggesting moderate efficiency in generating sales from assets. From mid-2023, there is a pronounced upward trend, peaking at around 1.19 in the latter part of 2024. This increase points to enhanced operational efficiency, with assets being better utilized to generate revenue, before a slight decrease towards 1.17 in mid-2025.

Financial Leverage

Financial leverage ratios fluctuate between approximately 1.41 and 1.9 throughout the time frame. Initial values hover near 1.4, then increase to near 1.9 around October 2022, indicating a rise in the use of debt relative to equity. Subsequently, a downward trend is noted from early 2023, dropping back to about 1.41 by mid-2025, which may reflect a strategic deleveraging or equity growth.

Return on Equity (ROE)

The ROE reveals a compelling trend of growth with some fluctuations. Beginning around 22-25%, it rises substantially post-2021, soaring past 90% in late 2024 before slightly moderating to roughly 86% by mid-2025. This outstanding increase suggests highly effective use of shareholder equity, likely bolstered by improved margins, operational efficiency, and controlled costs. However, caution is warranted due to the significant volatility and jumps observed.

In summary, the data depict a company achieving noteworthy improvements in profitability and efficiency over the periods analyzed. Enhancements in EBIT margins and asset turnover have driven higher returns on equity, supported by effective management of tax and interest burdens. Financial leverage shows a cyclical pattern of increase followed by reduction, possibly indicating strategic capital structure adjustments. Overall, the trends suggest strengthening financial performance and operational excellence, albeit with periods of volatility requiring ongoing attention.

The analysis of the quarterly financial ratios reveals several noteworthy trends in profitability and operational efficiency over the observed periods.

Net Profit Margin

The net profit margin demonstrates a generally upward trend with some fluctuations. Starting at approximately 25.61% in early 2020, it increased to above 36% by late 2021, indicating improving profitability. However, it experienced a decline to around 16.19% by late 2022, suggesting some challenges impacting profit margins during that period. Subsequently, the margin recovered significantly, reaching a peak of about 55.85% in late 2024 before slightly settling near 52.41% by mid-2025. This pattern indicates strong cyclical profitability improvements, with recent quarters showing exceptionally high margins.

Asset Turnover

Asset turnover shows a steady improvement over the entire timeline. Initial values around 0.63 were somewhat volatile but generally low mid-period, hovering between 0.51 and 0.71. Starting from early 2023, a marked acceleration in asset turnover is observable, rising from 0.66 to a peak of approximately 1.19 in mid-2025. This suggests increasingly efficient use of assets to generate revenue, implying operational enhancements or better asset management strategies implemented across recent quarters.

Return on Assets (ROA)

The ROA follows a pattern closely linked to the trends of net profit margin and asset turnover, given its composite nature. After starting at 16.15% in early 2020, it decreased to around 10.61% to 10.78% in late 2022 and early 2023, reflecting lower asset profitability during this period. Following this dip, a robust recovery took place, with ROA rising dramatically to over 65% in late 2024 and maintaining above 60% into mid-2025. This indicates significantly enhanced overall asset efficiency and profitability in recent quarters.

In summary, the data depicts a period of volatility around 2022 followed by strong operational and profitability growth afterward. The recent quarters are characterized by higher profitability margins, improved asset utilization, and outstanding returns on assets, signaling a notably strengthened financial performance moving forward.

The financial data presents several notable trends and fluctuations over the analyzed periods. The key ratios of tax burden, interest burden, EBIT margin, asset turnover, and return on assets (ROA) reveal important insights regarding operational efficiency, profitability, and financial management.

Tax Burden

The tax burden ratio demonstrates variability across the timeline. Starting near 0.94, it remains relatively stable around 0.93 to 0.98 for multiple quarters, with peaks slightly above 1.00 between early 2023 and mid-2023, indicating occasional periods of tax-related gains or adjustments. Following this, there is a gradual decline to about 0.86 towards the most recent periods, suggesting decreasing tax expense relative to pre-tax earnings.

Interest Burden

The interest burden ratio is relatively steady, oscillating narrowly just below or at 1.00. Initial values around 0.98 drop marginally to 0.94-0.95 in late 2022 and early 2023, but then quickly recover to 1.00 from early 2024 onward. This consistency indicates effective management of interest expenses with minimal impact on earnings before tax.

EBIT Margin

The EBIT margin shows significant fluctuations across periods. From around 27.68% in early 2020, the margin gradually climbs with notable peaks at 36.15% and 37.81% in early 2021 and early 2022 respectively. A decline then follows, dipping as low as 16.47% in late 2022, before recovering sharply to a high of 64.59% in late 2024. The margins stabilize around 59-61% in the latest quarters, reflecting a marked improvement in operating profitability over time, especially in recent years.

Asset Turnover

Asset turnover fluctuates moderately, beginning near 0.63 and declining to approximately 0.51 mid-2019 before a generally upward trajectory. Key rises occur after early 2023, surpassing 1.0 by mid-2024 and reaching levels close to 1.19 near the end of the timeline. This indicates increasingly efficient utilization of assets to generate revenue, which supports improving profitability metrics.

Return on Assets (ROA)

The ROA exhibits variable trends aligned with movements in EBIT margin and asset turnover. Starting in the mid-teens (around 16.15%), ROA declines to approximately 10.61% in late 2022 but then surges dramatically after early 2023, reaching a peak above 65% by late 2024, followed by a slight decrease to about 61.53%. This pattern signals enhanced overall profitability and effective asset use over time, especially in the latest periods.

In summary, the company's financial performance reflects significant improvement in operational efficiency and profitability, especially after 2022. The steady interest burden and decreasing tax burden support stronger net earnings, while the sharp rise in EBIT margin, asset turnover, and ROA highlights a period of robust growth and effective asset management. These trends suggest a growing capacity to convert investments into profits and strong control over operating costs and financial expenses in the most recent quarters.

The analyzed financial data reveals distinct trends in profitability and burden ratios over the observed periods. Beginning with the Tax Burden ratio, values start near 0.94 in early 2020, progressively increasing to a peak around 1.05 by early 2023. This indicates a rising share of income retained after tax until early 2023, followed by a gradual decrease stabilizing near 0.86 by mid-2025, signaling an increasing tax impact over the last periods.

The Interest Burden ratio maintains a generally stable level throughout the timeline. After a slight decrease from 0.98 in early 2020 to about 0.94 in early 2023, it recovers and holds steadily at 1.0 from early 2024 onwards. This suggests that interest expenses relative to EBIT have been minimized or eliminated in recent periods, reflecting improved financing costs or reduced debt burden.

The EBIT Margin exhibits a strong fluctuating trend with an initial margin in the high twenties percentage in early 2020, climbing steadily to reach above 37% by early 2022. This upward trajectory then reverses sharply, declining to a trough around 16-18% during late 2022 to early 2023. From mid-2023, the margin shows a robust recovery and consistently improves to surpass 64% by mid-2025, with a minor dip to about 60% near the end. This pattern denotes cycles of operational profitability challenges followed by significant efficiency gains or revenue growth.

The Net Profit Margin mirrors the EBIT Margin trends closely, starting around 25.6% in early 2020, ascending to a peak near 36% by early 2022. Subsequently, it decreases to just above 16% in early 2023 before recovering strongly to exceed 55% by mid-2025, with a slight dip below 52% close to the conclusion of the dataset. This synchronization with EBIT Margin suggests consistent after-tax profitability behavior impacted by operational variations rather than tax or interest effects alone.

Overall, the data signals periods of increasing profitability margins after a transient dip in 2022-early 2023. The stable interest burden ratio improving to unity indicates effective control over financing costs, while the fluctuating tax burden shows some volatility in effective tax rates. The sharp improvements in EBIT and Net Profit Margins after early 2023 hint at strengthened operational performance and cost management contributing to higher retained earnings and shareholder value.

Tax Burden Ratio

Gradual increase to a peak above 1.0 by early 2023, followed by decline to approximately 0.86 by mid-2025.

Interest Burden Ratio

Relatively stable with slight decrease until early 2023, then stable at 1.0 from early 2024 onward, indicating reduced interest impact.

EBIT Margin

Growth from ~28% in early 2020 to >37% by early 2022, decline to ~16-18% early 2023, then strong recovery to above 64% by mid-2025.

Net Profit Margin

Movement similar to EBIT Margin but slightly lower; rises from ~25.6% in early 2020 to ~36% early 2022, drops near 16% early 2023, then recovers >55% mid-2025.