Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
NVIDIA Corp., solvency ratios
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Debt to Equity and Related Ratios
- The debt to equity ratio exhibited an upward trend from 0.16 in early 2020, reaching a peak of 0.5 by early 2023, followed by a notable decline to 0.11 by early 2025. When including operating lease liabilities, a similar pattern is observed, with a peak at 0.54 in 2023 and falling to 0.13 in 2025. This indicates an initial increase in leverage, succeeded by significant deleveraging over the most recent two years.
- Debt to Capital Ratios
- Debt to capital ratios, both excluding and including operating lease liabilities, mirrored the trends of debt to equity ratios. Both measures increased from approximately 0.14-0.18 in 2020 to roughly 0.33-0.35 in 2023, then declined sharply to about 0.10-0.11 in 2025. The decline in these ratios suggests a strengthened capital structure with reduced reliance on debt financing in the latest periods.
- Debt to Assets Ratios
- The debt to assets ratios followed a comparable trajectory, rising from 0.11-0.15 in 2020 to around 0.27-0.29 by 2023, then decreasing to 0.08-0.09 in 2025. This downward movement in the latter periods reflects decreased leverage relative to total assets, contributing to lower financial risk.
- Financial Leverage
- Financial leverage increased gradually from 1.42 in 2020 to a peak of 1.86 in 2023, indicating a rising proportion of debt relative to equity. However, the ratio subsequently decreased to 1.41 by 2025, aligning with the trend of deleveraging observed in the debt ratios. The current leverage level is close to that at the beginning of the analyzed period.
- Interest Coverage
- Interest coverage showed considerable fluctuations. It declined sharply from a very high 58.12 in 2020 to 16.96 in 2023, indicating reduced ability to cover interest expenses from operating earnings during this period. A remarkable recovery occurred thereafter, with the ratio surging to 341.19 in 2025, suggestive of exceptional improvement in earnings relative to interest obligations or a reduction in debt costs.
- Fixed Charge Coverage
- Fixed charge coverage also experienced a decline from 18.89 in 2020 to a low of 10.19 in 2023. Subsequently, this ratio increased significantly to 140.35 by 2025, paralleling the trend in interest coverage. This improvement implies much stronger capacity to cover fixed financial charges in the most recent years.
Debt Ratios
Coverage Ratios
Debt to Equity
NVIDIA Corp., debt to equity calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Shareholders’ equity | 79,327) | 42,978) | 22,101) | 26,612) | 16,893) | 12,204) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.11 | 0.23 | 0.50 | 0.41 | 0.41 | 0.16 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.03 | 0.04 | 0.05 | 0.04 | 0.06 | |
| Analog Devices Inc. | — | 0.22 | 0.20 | 0.18 | 0.18 | 0.43 | |
| Applied Materials Inc. | — | 0.33 | 0.35 | 0.45 | 0.45 | 0.52 | |
| Broadcom Inc. | — | 1.00 | 1.64 | 1.74 | 1.59 | 1.72 | |
| Intel Corp. | — | 0.50 | 0.47 | 0.41 | 0.40 | 0.45 | |
| KLA Corp. | — | 1.97 | 2.02 | 4.75 | 1.02 | 1.30 | |
| Lam Research Corp. | — | 0.58 | 0.61 | 0.80 | 0.83 | 1.12 | |
| Micron Technology Inc. | — | 0.30 | 0.30 | 0.14 | 0.15 | 0.17 | |
| Monolithic Power Systems Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.56 | 0.71 | 0.86 | 1.58 | 2.59 | |
| Texas Instruments Inc. | — | 0.80 | 0.66 | 0.60 | 0.58 | 0.74 | |
| Debt to Equity, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.46 | 0.47 | 0.43 | 0.50 | 0.62 | |
| Debt to Equity, Industry | |||||||
| Information Technology | — | 0.61 | 0.66 | 0.70 | 0.83 | 0.97 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 8,463 ÷ 79,327 = 0.11
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a notable increase from 1,991 million USD in early 2020 to a peak of 10,953 million USD in early 2023. Following this, total debt began to decline, falling to 8,463 million USD by early 2025. This pattern suggests a phase of increased leverage followed by active debt reduction or refinancing strategies in the latter years.
- Shareholders’ Equity
- Shareholders’ equity demonstrated a consistent upward trajectory throughout the period. Starting at 12,204 million USD in early 2020, equity grew steadily, with a slight dip in early 2023 to 22,101 million USD, before significantly increasing to 79,327 million USD by early 2025. This sharp increase towards the end of the timeframe indicates substantial capital accumulation or retained earnings growth.
- Debt to Equity Ratio
- The debt to equity ratio followed a fluctuating trend paralleling changes in debt and equity values. It rose from 0.16 in early 2020 to a high of 0.5 in early 2023, reflecting increased leverage. Subsequently, the ratio declined sharply to 0.11 by early 2025, consistent with the reduction in debt and significant increase in equity, suggesting improved financial leverage and a stronger balance sheet position.
Debt to Equity (including Operating Lease Liability)
NVIDIA Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Short-term operating lease liabilities | 288) | 228) | 176) | 144) | 121) | 91) | |
| Long-term operating lease liabilities | 1,519) | 1,119) | 902) | 741) | 634) | 561) | |
| Total debt (including operating lease liability) | 10,270) | 11,056) | 12,031) | 11,831) | 7,718) | 2,643) | |
| Shareholders’ equity | 79,327) | 42,978) | 22,101) | 26,612) | 16,893) | 12,204) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.13 | 0.26 | 0.54 | 0.44 | 0.46 | 0.22 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.04 | 0.06 | 0.05 | 0.10 | 0.10 | |
| Analog Devices Inc. | — | 0.23 | 0.21 | 0.19 | 0.19 | 0.46 | |
| Applied Materials Inc. | — | 0.35 | 0.37 | 0.48 | 0.47 | 0.54 | |
| Broadcom Inc. | — | 1.02 | 1.65 | 1.76 | 1.61 | 1.75 | |
| Intel Corp. | — | 0.51 | 0.47 | 0.42 | 0.40 | 0.46 | |
| KLA Corp. | — | 2.02 | 2.08 | 4.83 | 1.05 | 1.34 | |
| Lam Research Corp. | — | 0.62 | 0.64 | 0.83 | 0.86 | 1.16 | |
| Micron Technology Inc. | — | 0.31 | 0.32 | 0.15 | 0.17 | 0.19 | |
| Monolithic Power Systems Inc. | — | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.59 | 0.74 | 0.90 | 1.64 | 2.67 | |
| Texas Instruments Inc. | — | 0.85 | 0.70 | 0.63 | 0.62 | 0.77 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.48 | 0.48 | 0.45 | 0.52 | 0.64 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.67 | 0.72 | 0.77 | 0.90 | 1.04 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 10,270 ÷ 79,327 = 0.13
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level increased significantly from 2,643 million US dollars in January 2020 to a peak of 12,031 million in January 2023. After this peak, the debt level showed a declining trend, descending to 11,056 million by January 2024 and further to 10,270 million by January 2025.
- Shareholders’ Equity
- Shareholders' equity exhibited a strong upward trend over the period analyzed. Starting at 12,204 million US dollars in January 2020, equity increased steadily, reaching 26,612 million in January 2022. Although there was a decrease to 22,101 million by January 2023, a remarkable surge followed, rising sharply to 42,978 million in January 2024 and more than doubling to 79,327 million by January 2025.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio rose from 0.22 in January 2020 to around 0.54 in January 2023, indicating an increasing reliance on debt compared to equity during that period. However, from January 2023 onwards, the ratio declined markedly to 0.26 in January 2024 and further to 0.13 in January 2025, reflecting a considerable strengthening of the equity base relative to debt and improved financial leverage.
- Summary of Trends
- Overall, the data indicate an initial phase characterized by increasing total debt and rising debt leverage. Subsequently, from 2023 onwards, a shift towards lowering debt levels combined with a substantial increase in shareholders’ equity is evident. This has significantly improved the company's debt to equity ratio, suggesting enhanced financial stability and reduced risk exposure in the more recent periods.
Debt to Capital
NVIDIA Corp., debt to capital calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Shareholders’ equity | 79,327) | 42,978) | 22,101) | 26,612) | 16,893) | 12,204) | |
| Total capital | 87,790) | 52,687) | 33,054) | 37,558) | 23,856) | 14,195) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.10 | 0.18 | 0.33 | 0.29 | 0.29 | 0.14 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | |
| Analog Devices Inc. | — | 0.18 | 0.16 | 0.15 | 0.15 | 0.30 | |
| Applied Materials Inc. | — | 0.25 | 0.26 | 0.31 | 0.31 | 0.34 | |
| Broadcom Inc. | — | 0.50 | 0.62 | 0.64 | 0.61 | 0.63 | |
| Intel Corp. | — | 0.34 | 0.32 | 0.29 | 0.29 | 0.31 | |
| KLA Corp. | — | 0.66 | 0.67 | 0.83 | 0.50 | 0.57 | |
| Lam Research Corp. | — | 0.37 | 0.38 | 0.44 | 0.45 | 0.53 | |
| Micron Technology Inc. | — | 0.23 | 0.23 | 0.12 | 0.13 | 0.15 | |
| Monolithic Power Systems Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.36 | 0.42 | 0.46 | 0.61 | 0.72 | |
| Texas Instruments Inc. | — | 0.45 | 0.40 | 0.37 | 0.37 | 0.43 | |
| Debt to Capital, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.32 | 0.32 | 0.30 | 0.33 | 0.38 | |
| Debt to Capital, Industry | |||||||
| Information Technology | — | 0.38 | 0.40 | 0.41 | 0.45 | 0.49 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,463 ÷ 87,790 = 0.10
2 Click competitor name to see calculations.
- Total debt
- The total debt experienced a significant increase from 1,991 million USD in January 2020 to a peak of 10,953 million USD by January 2023. After this peak, the debt level began to decline, reaching 8,463 million USD by January 2025.
- Total capital
- Total capital showed a strong upward trend throughout the period, starting at 14,195 million USD in January 2020 and rising substantially to 87,790 million USD by January 2025. Notably, there was a decrease observed in January 2023, dropping from the previous year's 37,558 million USD to 33,054 million USD, before continuing its steep ascent in subsequent years.
- Debt to capital ratio
- The debt to capital ratio increased from 0.14 in January 2020 to 0.33 in January 2023, reflecting a relative increase in debt compared to capital during this period. However, this ratio declined markedly in the following years, falling to 0.10 by January 2025, which indicates a reduction in leverage and an improved capital structure.
Debt to Capital (including Operating Lease Liability)
NVIDIA Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Short-term operating lease liabilities | 288) | 228) | 176) | 144) | 121) | 91) | |
| Long-term operating lease liabilities | 1,519) | 1,119) | 902) | 741) | 634) | 561) | |
| Total debt (including operating lease liability) | 10,270) | 11,056) | 12,031) | 11,831) | 7,718) | 2,643) | |
| Shareholders’ equity | 79,327) | 42,978) | 22,101) | 26,612) | 16,893) | 12,204) | |
| Total capital (including operating lease liability) | 89,597) | 54,034) | 34,132) | 38,443) | 24,611) | 14,847) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.11 | 0.20 | 0.35 | 0.31 | 0.31 | 0.18 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.04 | 0.05 | 0.05 | 0.09 | 0.09 | |
| Analog Devices Inc. | — | 0.18 | 0.17 | 0.16 | 0.16 | 0.31 | |
| Applied Materials Inc. | — | 0.26 | 0.27 | 0.32 | 0.32 | 0.35 | |
| Broadcom Inc. | — | 0.50 | 0.62 | 0.64 | 0.62 | 0.64 | |
| Intel Corp. | — | 0.34 | 0.32 | 0.30 | 0.29 | 0.31 | |
| KLA Corp. | — | 0.67 | 0.67 | 0.83 | 0.51 | 0.57 | |
| Lam Research Corp. | — | 0.38 | 0.39 | 0.45 | 0.46 | 0.54 | |
| Micron Technology Inc. | — | 0.24 | 0.24 | 0.13 | 0.14 | 0.16 | |
| Monolithic Power Systems Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.37 | 0.43 | 0.47 | 0.62 | 0.73 | |
| Texas Instruments Inc. | — | 0.46 | 0.41 | 0.39 | 0.38 | 0.44 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.32 | 0.32 | 0.31 | 0.34 | 0.39 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.40 | 0.42 | 0.43 | 0.47 | 0.51 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,270 ÷ 89,597 = 0.11
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibited a substantial increase from 2,643 million US dollars in early 2020 to a peak of 12,031 million US dollars in early 2023. Following this peak, debt decreased to 11,056 million in early 2024 and further declined to 10,270 million in early 2025. This trend indicates a significant buildup of liabilities until 2023, followed by a gradual reduction over the next two years.
- Total Capital (including operating lease liability)
- Total capital demonstrated consistent growth across the analyzed period, rising from 14,847 million US dollars in early 2020 to 38,443 million in early 2022. Although there was a slight dip to 34,132 million in early 2023, capital expanded significantly thereafter, reaching 54,034 million in early 2024 and further escalating to 89,597 million by early 2025. This pattern suggests ongoing investment or capitalization efforts resulting in substantial capital base expansion, especially in the most recent years.
- Debt to Capital Ratio (including operating lease liability)
- The ratio of debt to capital increased from 0.18 in early 2020 to 0.35 in early 2023, indicating a rising proportion of debt financing relative to the total capital base during this period. However, after 2023, the ratio declined markedly, reaching 0.20 in early 2024 and further dropping to 0.11 in early 2025. This decline signifies a shift towards reduced leverage and a stronger equity or capital position relative to debt in the latest years.
- Summary
- Overall, the data illustrate a phase of heightened debt accumulation through to early 2023, accompanied by a growing capital base. Subsequent years show a strategic reduction in leverage, with a decreasing debt to capital ratio driven both by decreasing debt levels and accelerating capital growth. The recent trends suggest emphasis on deleveraging and strengthening the capital structure.
Debt to Assets
NVIDIA Corp., debt to assets calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Total assets | 111,601) | 65,728) | 41,182) | 44,187) | 28,791) | 17,315) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.08 | 0.15 | 0.27 | 0.25 | 0.24 | 0.11 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.02 | 0.04 | 0.04 | 0.03 | 0.04 | |
| Analog Devices Inc. | — | 0.16 | 0.14 | 0.13 | 0.13 | 0.24 | |
| Applied Materials Inc. | — | 0.18 | 0.18 | 0.20 | 0.21 | 0.24 | |
| Broadcom Inc. | — | 0.41 | 0.54 | 0.54 | 0.53 | 0.54 | |
| Intel Corp. | — | 0.25 | 0.26 | 0.23 | 0.23 | 0.24 | |
| KLA Corp. | — | 0.43 | 0.42 | 0.53 | 0.34 | 0.37 | |
| Lam Research Corp. | — | 0.27 | 0.27 | 0.29 | 0.31 | 0.40 | |
| Micron Technology Inc. | — | 0.19 | 0.21 | 0.10 | 0.12 | 0.12 | |
| Monolithic Power Systems Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.27 | 0.30 | 0.32 | 0.38 | 0.44 | |
| Texas Instruments Inc. | — | 0.38 | 0.35 | 0.32 | 0.31 | 0.35 | |
| Debt to Assets, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.25 | 0.26 | 0.24 | 0.26 | 0.30 | |
| Debt to Assets, Industry | |||||||
| Information Technology | — | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,463 ÷ 111,601 = 0.08
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a significant increase from 1,991 million US dollars in early 2020 to a peak of 10,953 million US dollars in early 2023. Subsequently, there was a downward trend reaching 8,463 million US dollars by early 2025, indicating a reduction in debt levels after the peak.
- Total Assets
- Total assets showed consistent growth throughout the observed period, starting at 17,315 million US dollars in 2020 and expanding substantially to 111,601 million US dollars by early 2025. This represents a more than sixfold increase over the five-year span, with a notable surge after early 2023.
- Debt to Assets Ratio
- The debt to assets ratio followed an upward trend from 0.11 in 2020 to a high of 0.27 by early 2023, reflecting the rising proportion of debt relative to assets during the period of debt accumulation. However, from 2023 onward, the ratio declined sharply to 0.08 by early 2025, suggesting improved balance sheet leverage and enhanced financial stability as asset growth outpaced debt reduction.
- Summary of Trends
- Over the examined timeframe, the company increased both its asset base and debt level with assets growing at a stronger pace. After reaching a peak in total debt in 2023, the company appears to have taken steps to deleverage, as evidenced by declining debt figures and a reduced debt-to-assets ratio. The substantial asset growth coupled with decreased relative indebtedness suggests a strengthening financial position and potentially enhanced capacity for future investment or resilience against financial risks.
Debt to Assets (including Operating Lease Liability)
NVIDIA Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 1,250) | 1,250) | —) | 999) | —) | |
| Long-term debt | 8,463) | 8,459) | 9,703) | 10,946) | 5,964) | 1,991) | |
| Total debt | 8,463) | 9,709) | 10,953) | 10,946) | 6,963) | 1,991) | |
| Short-term operating lease liabilities | 288) | 228) | 176) | 144) | 121) | 91) | |
| Long-term operating lease liabilities | 1,519) | 1,119) | 902) | 741) | 634) | 561) | |
| Total debt (including operating lease liability) | 10,270) | 11,056) | 12,031) | 11,831) | 7,718) | 2,643) | |
| Total assets | 111,601) | 65,728) | 41,182) | 44,187) | 28,791) | 17,315) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.09 | 0.17 | 0.29 | 0.27 | 0.27 | 0.15 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 0.03 | 0.05 | 0.04 | 0.06 | 0.06 | |
| Analog Devices Inc. | — | 0.17 | 0.15 | 0.14 | 0.14 | 0.25 | |
| Applied Materials Inc. | — | 0.19 | 0.20 | 0.22 | 0.22 | 0.26 | |
| Broadcom Inc. | — | 0.42 | 0.54 | 0.55 | 0.53 | 0.55 | |
| Intel Corp. | — | 0.26 | 0.26 | 0.23 | 0.23 | 0.24 | |
| KLA Corp. | — | 0.44 | 0.43 | 0.54 | 0.35 | 0.38 | |
| Lam Research Corp. | — | 0.28 | 0.28 | 0.30 | 0.33 | 0.41 | |
| Micron Technology Inc. | — | 0.20 | 0.22 | 0.11 | 0.12 | 0.13 | |
| Monolithic Power Systems Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Qualcomm Inc. | — | 0.28 | 0.31 | 0.33 | 0.40 | 0.46 | |
| Texas Instruments Inc. | — | 0.40 | 0.36 | 0.34 | 0.33 | 0.37 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 0.26 | 0.27 | 0.25 | 0.27 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.27 | 0.28 | 0.29 | 0.31 | 0.33 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,270 ÷ 111,601 = 0.09
2 Click competitor name to see calculations.
The financial data over the six-year period reveals notable trends in the company's capital structure and asset base. Total debt initially increased substantially from 2,643 million USD in early 2020 to a peak of 12,031 million USD by early 2023, followed by a gradual decrease to 10,270 million USD by early 2025. This indicates a pattern of leveraging followed by a modest deleveraging phase.
Total assets exhibit a strong upward trajectory, rising consistently from 17,315 million USD in early 2020 to 111,601 million USD by early 2025. This growth is especially pronounced after early 2023, where assets increased sharply, suggesting significant expansion or acquisition activities during the latter part of the period.
The debt to assets ratio reflects the interplay between debt levels and asset growth. It rose from 0.15 in early 2020 to around 0.29 in early 2023, signifying increased leverage relative to assets. However, this ratio then declined sharply to 0.09 by early 2025, indicating that asset growth outpaced debt accumulation in the most recent years and leading to a stronger balance sheet position from a leverage standpoint.
- Total Debt (including operating lease liability)
- Increased over the first four years, nearly quintupling between 2020 and 2023, then gradually reduced by approximately 15% by 2025.
- Total Assets
- Demonstrated strong growth throughout the period, especially in the final two years where assets nearly doubled from approximately 65,728 million USD to 111,601 million USD.
- Debt to Assets Ratio
- Peaked around 0.29 in early 2023, reflecting heightened leverage, but subsequently fell sharply to 0.09, indicating improved asset coverage and reduced relative debt burden.
Overall, the data suggests an initial phase of increased borrowing to finance asset growth or strategic investments, followed by asset expansion outpacing debt increases, leading to reduced relative leverage and a potentially stronger financial position by early 2025.
Financial Leverage
NVIDIA Corp., financial leverage calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 111,601) | 65,728) | 41,182) | 44,187) | 28,791) | 17,315) | |
| Shareholders’ equity | 79,327) | 42,978) | 22,101) | 26,612) | 16,893) | 12,204) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.41 | 1.53 | 1.86 | 1.66 | 1.70 | 1.42 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 1.20 | 1.21 | 1.23 | 1.66 | 1.54 | |
| Analog Devices Inc. | — | 1.37 | 1.37 | 1.38 | 1.38 | 1.79 | |
| Applied Materials Inc. | — | 1.81 | 1.88 | 2.19 | 2.11 | 2.11 | |
| Broadcom Inc. | — | 2.45 | 3.04 | 3.23 | 3.03 | 3.18 | |
| Intel Corp. | — | 1.98 | 1.81 | 1.80 | 1.77 | 1.89 | |
| KLA Corp. | — | 4.58 | 4.82 | 8.99 | 3.04 | 3.48 | |
| Lam Research Corp. | — | 2.20 | 2.29 | 2.74 | 2.64 | 2.81 | |
| Micron Technology Inc. | — | 1.54 | 1.46 | 1.33 | 1.34 | 1.38 | |
| Monolithic Power Systems Inc. | — | 1.15 | 1.19 | 1.23 | 1.27 | 1.25 | |
| Qualcomm Inc. | — | 2.10 | 2.37 | 2.72 | 4.14 | 5.86 | |
| Texas Instruments Inc. | — | 2.10 | 1.91 | 1.87 | 1.85 | 2.11 | |
| Financial Leverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 1.83 | 1.79 | 1.79 | 1.89 | 2.07 | |
| Financial Leverage, Industry | |||||||
| Information Technology | — | 2.45 | 2.55 | 2.68 | 2.89 | 3.12 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 111,601 ÷ 79,327 = 1.41
2 Click competitor name to see calculations.
- Total assets
- The total assets increased consistently over the periods, starting at 17,315 million US dollars in January 2020 and reaching 111,601 million US dollars by January 2025. Notably, there was a slight dip from 44,187 million in January 2022 to 41,182 million in January 2023, followed by a significant rise in subsequent years. Overall, the trend indicates substantial growth in the company's asset base, particularly strong from 2023 onward.
- Shareholders’ equity
- Shareholders’ equity also exhibited a general upward trend, beginning at 12,204 million US dollars in January 2020 and increasing to 79,327 million US dollars by January 2025. However, a decline was observed between January 2022 and January 2023, where equity decreased from 26,612 million to 22,101 million. Despite this, equity rebounded sharply afterward, closely mirroring the growth pattern of total assets.
- Financial leverage
- The financial leverage ratio fluctuated over the periods, with a starting point of 1.42 in January 2020, rising to a peak of 1.86 in January 2023. After this peak, leverage decreased to 1.41 by January 2025. The variation suggests changes in the company’s capital structure, with increased reliance on debt relative to equity peaking in early 2023 before returning to a more conservative level similar to that in 2020.
Interest Coverage
NVIDIA Corp., interest coverage calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 72,880) | 29,760) | 4,368) | 9,752) | 4,332) | 2,796) | |
| Add: Income tax expense | 11,146) | 4,058) | (187) | 189) | 77) | 174) | |
| Add: Interest expense | 247) | 257) | 262) | 236) | 184) | 52) | |
| Earnings before interest and tax (EBIT) | 84,273) | 34,075) | 4,443) | 10,177) | 4,593) | 3,022) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 341.19 | 132.59 | 16.96 | 43.12 | 24.96 | 58.12 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 22.98 | 5.79 | 14.61 | 109.09 | 28.23 | |
| Analog Devices Inc. | — | 6.52 | 14.63 | 16.46 | 8.19 | 7.79 | |
| Applied Materials Inc. | — | 34.00 | 33.42 | 34.33 | 29.69 | 18.36 | |
| Broadcom Inc. | — | 3.51 | 10.31 | 8.16 | 4.59 | 2.37 | |
| Intel Corp. | — | -9.84 | 1.87 | 16.66 | 37.35 | 40.87 | |
| KLA Corp. | — | 11.25 | 13.76 | 22.76 | 16.00 | 9.22 | |
| Lam Research Corp. | — | 24.54 | 28.40 | 29.11 | 21.95 | 15.51 | |
| Micron Technology Inc. | — | 3.19 | -13.58 | 51.66 | 35.18 | 16.41 | |
| Monolithic Power Systems Inc. | — | — | — | — | — | — | |
| Qualcomm Inc. | — | 15.83 | 11.72 | 31.61 | 19.38 | 10.50 | |
| Texas Instruments Inc. | — | 11.73 | 22.01 | 47.88 | 49.47 | 32.67 | |
| Interest Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 9.52 | 10.54 | 21.33 | 18.47 | 14.15 | |
| Interest Coverage, Industry | |||||||
| Information Technology | — | 19.65 | 17.77 | 22.75 | 19.95 | 14.17 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 84,273 ÷ 247 = 341.19
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT has shown a significant upward trend over the analyzed periods, increasing from 3,022 million US dollars in early 2020 to 84,273 million US dollars by early 2025. There was a notable peak in early 2022 at 10,177 million US dollars, followed by a dip in early 2023 down to 4,443 million US dollars. After this decrease, EBIT sharply rose in subsequent years, particularly between early 2023 and early 2024, reaching 34,075 million US dollars and continuing to increase substantially in early 2025.
- Interest Expense
- Interest expense has experienced changes with an initial increase from 52 million US dollars in early 2020 to a peak of 262 million US dollars in early 2023. Subsequently, there was a slight decline in interest expense to 247 million US dollars by early 2025. Overall, interest expense remains relatively small when compared to EBIT values.
- Interest Coverage Ratio
- The interest coverage ratio, indicating the ability to cover interest expenses through EBIT, has varied considerably. Starting at 58.12 in early 2020, the ratio declined to 16.96 by early 2023, reflecting reduced coverage ability at that point. However, this ratio dramatically improved thereafter, reaching 132.59 in early 2024 and surging to an exceptionally high level of 341.19 by early 2025. This improvement suggests a strong increase in EBIT relative to interest expenses, signifying enhanced financial stability and lower risk associated with interest payments over time.
- Overall Analysis
- The data indicates a volatile yet overall strongly positive financial performance with a remarkable growth in EBIT, especially from 2023 onwards. Despite some fluctuations in interest expenses, the considerable increase in EBIT has substantially strengthened the company's capacity to cover interest obligations, as shown by the sharp rise in the interest coverage ratio. These trends suggest improved operational profitability and financial health through the periods examined.
Fixed Charge Coverage
NVIDIA Corp., fixed charge coverage calculation, comparison to benchmarks
| Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 72,880) | 29,760) | 4,368) | 9,752) | 4,332) | 2,796) | |
| Add: Income tax expense | 11,146) | 4,058) | (187) | 189) | 77) | 174) | |
| Add: Interest expense | 247) | 257) | 262) | 236) | 184) | 52) | |
| Earnings before interest and tax (EBIT) | 84,273) | 34,075) | 4,443) | 10,177) | 4,593) | 3,022) | |
| Add: Operating lease expenses | 356) | 269) | 193) | 168) | 145) | 114) | |
| Earnings before fixed charges and tax | 84,629) | 34,344) | 4,636) | 10,345) | 4,738) | 3,136) | |
| Interest expense | 247) | 257) | 262) | 236) | 184) | 52) | |
| Operating lease expenses | 356) | 269) | 193) | 168) | 145) | 114) | |
| Fixed charges | 603) | 526) | 455) | 404) | 329) | 166) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 140.35 | 65.29 | 10.19 | 25.61 | 14.40 | 18.89 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 9.46 | 3.18 | 6.82 | 36.00 | 13.08 | |
| Analog Devices Inc. | — | 5.55 | 11.89 | 12.87 | 6.64 | 6.48 | |
| Applied Materials Inc. | — | 34.00 | 23.69 | 24.67 | 22.50 | 14.48 | |
| Broadcom Inc. | — | 3.40 | 9.81 | 6.55 | 3.70 | 1.92 | |
| Intel Corp. | — | -7.74 | 1.59 | 7.34 | 16.56 | 25.00 | |
| KLA Corp. | — | 9.72 | 12.19 | 18.72 | 13.03 | 7.74 | |
| Lam Research Corp. | — | 17.23 | 20.49 | 21.44 | 17.80 | 12.52 | |
| Micron Technology Inc. | — | 2.75 | -9.77 | 31.49 | 22.49 | 11.10 | |
| Monolithic Power Systems Inc. | — | 147.79 | 163.49 | 195.13 | 111.93 | 114.81 | |
| Qualcomm Inc. | — | 12.73 | 9.29 | 22.52 | 14.48 | 8.30 | |
| Texas Instruments Inc. | — | 10.20 | 18.41 | 36.70 | 36.25 | 24.14 | |
| Fixed Charge Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 8.22 | 8.41 | 14.48 | 12.79 | 10.46 | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | — | 12.46 | 11.37 | 13.48 | 12.23 | 9.05 | |
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 84,629 ÷ 603 = 140.35
2 Click competitor name to see calculations.
The financial data displays a significant evolution in earnings before fixed charges and tax over the examined periods. Starting at $3,136 million in early 2020, there is a marked increase by 2022, with earnings rising to $10,345 million. A decline is observed in 2023, with earnings dropping to $4,636 million, which is followed by a sharp and substantial increase in the subsequent two years, reaching $34,344 million in 2024 and further surging to $84,629 million in 2025.
Fixed charges have displayed a steady increase throughout the periods. Beginning at $166 million in 2020, fixed charges have consistently risen each year, reaching $603 million by 2025. The rate of increase, however, is moderate compared to the volatility in earnings before fixed charges and tax.
The fixed charge coverage ratio, which measures the company's ability to cover its fixed charges with earnings, shows notable fluctuations. Initially, it starts at a high 18.89 in 2020, then declines to 14.4 in 2021, and rebounds strongly to 25.61 in 2022. A significant dip to 10.19 occurs in 2023, indicating relatively lower coverage capability that year. However, there is an exceptional improvement in 2024 and 2025, where the ratio jumps dramatically to 65.29 and then to an extremely high level of 140.35, respectively. This suggests that by the later years, the company has vastly strengthened its earnings relative to its fixed charges.
Overall, the data signals strong volatility in earnings with an overarching trend of growth in financial capacity to cover fixed charges. The sharp increases in earnings in 2024 and 2025 contribute to a disproportionately high fixed charge coverage ratio, indicating an improved financial buffer against fixed obligations despite the gradual increase in fixed charges themselves.