Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

NVIDIA Corp. (NASDAQ:NVDA)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

NVIDIA Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Debt Ratios
Debt to equity 0.16 0.21 0.27 0.48 0.32 0.32
Debt to equity (including operating lease liability) 0.22 0.21 0.27 0.48 0.32 0.32
Debt to capital 0.14 0.18 0.21 0.33 0.24 0.24
Debt to capital (including operating lease liability) 0.18 0.18 0.21 0.33 0.24 0.24
Debt to assets 0.11 0.15 0.18 0.28 0.19 0.19
Debt to assets (including operating lease liability) 0.15 0.15 0.18 0.28 0.19 0.19
Financial leverage 1.42 1.42 1.50 1.71 1.65 1.63
Coverage Ratios
Interest coverage 58.12 68.17 53.39 33.84 16.81 17.36
Fixed charge coverage 18.89 29.23 28.79 19.32 9.08 9.08

Based on: 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), 10-K (filing date: 2015-03-12).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. NVIDIA Corp.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. NVIDIA Corp.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. NVIDIA Corp.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. NVIDIA Corp.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. NVIDIA Corp.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. NVIDIA Corp.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. NVIDIA Corp.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. NVIDIA Corp.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. NVIDIA Corp.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity

NVIDIA Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
 
Shareholders’ equity 12,204  9,342  7,471  5,762  4,469  4,418 
Solvency Ratio
Debt to equity1 0.16 0.21 0.27 0.48 0.32 0.32
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc. 0.17 0.99 2.28 3.45
Analog Devices Inc. 0.47 0.58 0.77 0.34 0.17
Apple Inc. 1.19 1.07 0.86 0.68 0.54
Applied Materials Inc. 0.65 0.78 0.57 0.46 0.60
Broadcom Inc. 1.32 0.66 0.87 0.72 0.84
Cisco Systems Inc. 0.38 0.73 0.59 0.51 0.45 0.42
Intel Corp. 0.37 0.35 0.39 0.38 0.37
Lam Research Corp. 1.12 0.96 0.37 0.40 0.74 0.46
Micron Technology Inc. 0.16 0.14 0.60 0.82 0.60
Qualcomm Inc. 3.25 17.64 0.71 0.37 0.35
Texas Instruments Inc. 0.65 0.56 0.39 0.34 0.41
Debt to Equity, Sector
Technology Hardware & Equipment 0.77 0.70 0.66 0.54 0.47
Debt to Equity, Industry
Technology 0.56 0.56 0.59 0.48 0.43

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 1,991 ÷ 12,204 = 0.16

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. NVIDIA Corp.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

NVIDIA Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
Short-term operating lease liabilities 91  —  —  —  —  — 
Long-term operating lease liabilities 561  —  —  —  —  — 
Total debt (including operating lease liability) 2,643  1,988  2,000  2,785  1,423  1,398 
 
Shareholders’ equity 12,204  9,342  7,471  5,762  4,469  4,418 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.22 0.21 0.27 0.48 0.32 0.32
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.26 0.99 2.28 3.45
Cisco Systems Inc. 0.41 0.73 0.59 0.51 0.45 0.42
Intel Corp. 0.38 0.35 0.39 0.38 0.37
Lam Research Corp. 1.16 0.96 0.37 0.40 0.74 0.46
Texas Instruments Inc. 0.69 0.56 0.39 0.34 0.41
Debt to Equity (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.77 0.70 0.66 0.54 0.47
Debt to Equity (including Operating Lease Liability), Industry
Technology 0.61 0.57 0.59 0.48 0.43

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 2,643 ÷ 12,204 = 0.22

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. NVIDIA Corp.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Debt to Capital

NVIDIA Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
Shareholders’ equity 12,204  9,342  7,471  5,762  4,469  4,418 
Total capital 14,195  11,330  9,471  8,547  5,892  5,816 
Solvency Ratio
Debt to capital1 0.14 0.18 0.21 0.33 0.24 0.24
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc. 0.15 0.50 0.70 0.78 1.22
Analog Devices Inc. 0.32 0.37 0.44 0.25 0.15
Apple Inc. 0.54 0.52 0.46 0.40 0.35
Applied Materials Inc. 0.39 0.44 0.36 0.32 0.37
Broadcom Inc. 0.57 0.40 0.46 0.42 0.46
Cisco Systems Inc. 0.28 0.42 0.37 0.34 0.31 0.30
Intel Corp. 0.27 0.26 0.28 0.28 0.27
Lam Research Corp. 0.53 0.49 0.27 0.28 0.42 0.32
Micron Technology Inc. 0.14 0.13 0.37 0.45 0.37
Qualcomm Inc. 0.76 0.95 0.42 0.27 0.26
Texas Instruments Inc. 0.39 0.36 0.28 0.26 0.29
Debt to Capital, Sector
Technology Hardware & Equipment 0.43 0.41 0.40 0.35 0.32
Debt to Capital, Industry
Technology 0.36 0.36 0.37 0.33 0.30

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,991 ÷ 14,195 = 0.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. NVIDIA Corp.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

NVIDIA Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
Short-term operating lease liabilities 91  —  —  —  —  — 
Long-term operating lease liabilities 561  —  —  —  —  — 
Total debt (including operating lease liability) 2,643  1,988  2,000  2,785  1,423  1,398 
Shareholders’ equity 12,204  9,342  7,471  5,762  4,469  4,418 
Total capital (including operating lease liability) 14,847  11,330  9,471  8,547  5,892  5,816 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.18 0.18 0.21 0.33 0.24 0.24
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.20 0.50 0.70 0.78 1.22
Cisco Systems Inc. 0.29 0.42 0.37 0.34 0.31 0.30
Intel Corp. 0.28 0.26 0.28 0.28 0.27
Lam Research Corp. 0.54 0.49 0.27 0.28 0.42 0.32
Texas Instruments Inc. 0.41 0.36 0.28 0.26 0.29
Debt to Capital (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.44 0.41 0.40 0.35 0.32
Debt to Capital (including Operating Lease Liability), Industry
Technology 0.38 0.36 0.37 0.33 0.30

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,643 ÷ 14,847 = 0.18

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. NVIDIA Corp.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Debt to Assets

NVIDIA Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
 
Total assets 17,315  13,292  11,241  9,841  7,370  7,201 
Solvency Ratio
Debt to assets1 0.11 0.15 0.18 0.28 0.19 0.19
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc. 0.08 0.27 0.39 0.43 0.73
Analog Devices Inc. 0.26 0.31 0.37 0.22 0.12
Apple Inc. 0.32 0.31 0.31 0.27 0.22
Applied Materials Inc. 0.28 0.30 0.27 0.23 0.30
Broadcom Inc. 0.49 0.35 0.32 0.27 0.37
Cisco Systems Inc. 0.15 0.25 0.24 0.26 0.24 0.22
Intel Corp. 0.21 0.21 0.22 0.22 0.22
Lam Research Corp. 0.40 0.37 0.19 0.22 0.35 0.25
Micron Technology Inc. 0.12 0.11 0.32 0.36 0.30
Qualcomm Inc. 0.48 0.50 0.33 0.22 0.22
Texas Instruments Inc. 0.32 0.30 0.23 0.22 0.25
Debt to Assets, Sector
Technology Hardware & Equipment 0.30 0.28 0.29 0.26 0.23
Debt to Assets, Industry
Technology 0.24 0.25 0.27 0.24 0.22

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,991 ÷ 17,315 = 0.11

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. NVIDIA Corp.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

NVIDIA Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Convertible short-term debt —  —  15  796  1,413  — 
Long-term debt 1,991  1,988  1,985  1,983  —  — 
Convertible long-term debt —  —  —  —  —  1,384 
Capital lease obligations, long-term —  —  —  10  14 
Total debt 1,991  1,988  2,000  2,785  1,423  1,398 
Short-term operating lease liabilities 91  —  —  —  —  — 
Long-term operating lease liabilities 561  —  —  —  —  — 
Total debt (including operating lease liability) 2,643  1,988  2,000  2,785  1,423  1,398 
 
Total assets 17,315  13,292  11,241  9,841  7,370  7,201 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.15 0.15 0.18 0.28 0.19 0.19
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.12 0.27 0.39 0.43 0.73
Cisco Systems Inc. 0.16 0.25 0.24 0.26 0.24 0.22
Intel Corp. 0.22 0.21 0.22 0.22 0.22
Lam Research Corp. 0.41 0.37 0.19 0.22 0.35 0.25
Texas Instruments Inc. 0.34 0.30 0.23 0.22 0.25
Debt to Assets (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.30 0.28 0.29 0.26 0.23
Debt to Assets (including Operating Lease Liability), Industry
Technology 0.26 0.25 0.27 0.24 0.22

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,643 ÷ 17,315 = 0.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. NVIDIA Corp.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Financial Leverage

NVIDIA Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Total assets 17,315  13,292  11,241  9,841  7,370  7,201 
Shareholders’ equity 12,204  9,342  7,471  5,762  4,469  4,418 
Solvency Ratio
Financial leverage1 1.42 1.42 1.50 1.71 1.65 1.63
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc. 2.13 3.60 5.79 7.98
Analog Devices Inc. 1.83 1.86 2.08 1.54 1.39
Apple Inc. 3.74 3.41 2.80 2.51 2.43
Applied Materials Inc. 2.32 2.60 2.08 2.02 2.01
Broadcom Inc. 2.71 1.88 2.68 2.64 2.25
Cisco Systems Inc. 2.50 2.91 2.52 1.96 1.91 1.90
Intel Corp. 1.76 1.72 1.79 1.71 1.69
Lam Research Corp. 2.81 2.57 1.92 1.78 2.08 1.84
Micron Technology Inc. 1.36 1.34 1.90 2.28 1.96
Qualcomm Inc. 6.71 35.22 2.13 1.65 1.62
Texas Instruments Inc. 2.02 1.91 1.71 1.57 1.63
Financial Leverage, Sector
Technology Hardware & Equipment 2.59 2.49 2.27 2.11 2.03
Financial Leverage, Industry
Technology 2.32 2.27 2.20 2.04 1.99

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 17,315 ÷ 12,204 = 1.42

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. NVIDIA Corp.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

NVIDIA Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Net income 2,796  4,141  3,047  1,666  614  631 
Add: Income tax expense 174  (245) 149  239  129  124 
Add: Interest expense 52  58  61  58  47  46 
Earnings before interest and tax (EBIT) 3,022  3,954  3,257  1,963  790  801 
Solvency Ratio
Interest coverage1 58.12 68.17 53.39 33.84 16.81 17.36
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc. 4.96 3.71 1.49 -1.94 -3.04
Analog Devices Inc. 7.49 7.46 4.30 11.78 30.97
Apple Inc. 19.38 23.50 28.59 43.15 99.93
Applied Materials Inc. 14.79 21.06 19.84 13.99 16.51
Broadcom Inc. 2.54 8.24 5.02 -0.89 8.68
Cisco Systems Inc. 24.88 17.96 14.83 15.27 20.11 20.79
Intel Corp. 50.20 50.82 32.50 18.65 43.17
Lam Research Corp. 15.51 21.86 33.36 16.39 8.12 11.05
Micron Technology Inc. 56.09 42.83 9.66 0.41 9.24
Qualcomm Inc. 12.93 1.67 7.11 24.01 63.38
Texas Instruments Inc. 34.69 54.49 78.95 62.63 47.84
Interest Coverage, Sector
Technology Hardware & Equipment 18.23 21.37 20.52 22.02 42.55
Interest Coverage, Industry
Technology 19.75 21.76 20.41 22.53 35.53

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,022 ÷ 52 = 58.12

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. NVIDIA Corp.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Fixed Charge Coverage

NVIDIA Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Net income 2,796  4,141  3,047  1,666  614  631 
Add: Income tax expense 174  (245) 149  239  129  124 
Add: Interest expense 52  58  61  58  47  46 
Earnings before interest and tax (EBIT) 3,022  3,954  3,257  1,963  790  801 
Add: Operating lease expense 114  80  54  46  45  47 
Earnings before fixed charges and tax 3,136  4,034  3,311  2,009  835  848 
 
Interest expense 52  58  61  58  47  46 
Operating lease expense 114  80  54  46  45  47 
Fixed charges 166  138  115  104  92  93 
Solvency Ratio
Fixed charge coverage1 18.89 29.23 28.79 19.32 9.08 9.08
Benchmarks
Fixed Charge Coverage, Competitors2
Advanced Micro Devices Inc. 3.48 2.89 1.36 -1.35 -2.12
Analog Devices Inc. 5.62 5.84 3.68 7.50 11.28
Apple Inc. 14.48 17.42 19.72 26.63 48.49
Applied Materials Inc. 12.35 17.53 17.08 11.43 12.84
Broadcom Inc. 2.27 6.28 3.58 -0.36 6.47
Cisco Systems Inc. 14.79 12.28 10.41 10.72 13.18 12.67
Intel Corp. 36.69 34.36 23.36 13.74 25.09
Lam Research Corp. 12.52 17.83 27.07 14.13 7.36 9.35
Micron Technology Inc. 32.90 36.32 8.97 0.47 8.29
Qualcomm Inc. 10.68 1.55 5.85 17.54 32.96
Texas Instruments Inc. 21.68 33.77 39.24 30.70 23.43
Fixed Charge Coverage, Sector
Technology Hardware & Equipment 13.71 15.90 14.94 15.29 25.47
Fixed Charge Coverage, Industry
Technology 11.68 13.28 12.39 13.10 16.53

Based on: 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), 10-K (filing date: 2015-03-12).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,136 ÷ 166 = 18.89

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. NVIDIA Corp.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.