Stock Analysis on Net
Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

NVIDIA Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Return on Sales
Gross profit margin 62.34% 61.99% 61.21% 59.93% 58.80% 56.11%
Operating profit margin 27.18% 26.07% 32.47% 33.05% 27.99% 14.91%
Net profit margin 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Return on Investment
Return on equity (ROE) 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Return on assets (ROA) 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%

Based on: 10-K (filing date: 2021-02-26), 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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. NVIDIA Corp.’s gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. NVIDIA Corp.’s operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. NVIDIA Corp.’s net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. NVIDIA Corp.’s ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. NVIDIA Corp.’s ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

NVIDIA Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 10,396  6,768  7,171  5,822  4,063  2,811 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Gross profit margin1 62.34% 61.99% 61.21% 59.93% 58.80% 56.11%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 44.53% 42.61% 37.79% 34.21% 23.36%
Applied Materials Inc. 44.72% 43.72% 45.31% 44.93% 41.67%
Broadcom Inc. 56.58% 55.24% 51.48% 48.25% 44.86%
Intel Corp. 56.01% 58.56% 61.73% 62.25% 60.94%
Lam Research Corp. 46.53% 45.88% 45.15% 46.63% 44.97% 44.49%
Micron Technology Inc. 37.62% 30.57% 45.72% 58.87% 41.51% 20.20%
Qualcomm Inc. 60.67% 64.57% 54.94% 56.07% 58.61%
Texas Instruments Inc. 64.10% 63.71% 65.11% 64.26% 61.63%

Based on: 10-K (filing date: 2021-02-26), 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).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 10,396 ÷ 16,675 = 62.34%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. NVIDIA Corp.’s gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

NVIDIA Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Income from operations 4,532  2,846  3,804  3,210  1,934  747 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Operating profit margin1 27.18% 26.07% 32.47% 33.05% 27.99% 14.91%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 14.02% 9.37% 6.97% 3.83% -8.71%
Applied Materials Inc. 25.37% 22.93% 27.80% 26.61% 19.88%
Broadcom Inc. 16.80% 15.24% 24.63% 13.51% -3.09%
Intel Corp. 30.41% 30.62% 32.91% 28.58% 21.68%
Lam Research Corp. 30.64% 26.62% 25.53% 29.01% 23.74% 18.25%
Micron Technology Inc. 22.68% 14.01% 31.51% 49.34% 28.88% 1.35%
Qualcomm Inc. 26.58% 31.59% 3.26% 11.73% 27.57%
Texas Instruments Inc. 40.76% 39.79% 42.53% 40.66% 35.89%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 25.87% 28.34% 30.50% 24.77% 18.61%
Operating Profit Margin, Industry
Information Technology 25.78% 26.62% 27.30% 24.93% 23.63%

Based on: 10-K (filing date: 2021-02-26), 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).

1 2021 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 4,532 ÷ 16,675 = 27.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. NVIDIA Corp.’s operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Net Profit Margin

NVIDIA Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Revenue 16,675  10,918  11,716  9,714  6,910  5,010 
Profitability Ratio
Net profit margin1 25.98% 25.61% 35.34% 31.37% 24.11% 12.26%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 25.50% 5.07% 5.20% 0.81% -11.63%
Applied Materials Inc. 21.04% 18.52% 19.20% 23.62% 15.90%
Broadcom Inc. 12.39% 12.05% 58.80% 9.59% -13.13%
Intel Corp. 26.84% 29.25% 29.72% 15.30% 17.37%
Lam Research Corp. 26.72% 22.42% 22.70% 21.49% 21.19% 15.53%
Micron Technology Inc. 21.16% 12.54% 26.97% 46.51% 25.04% -2.23%
Qualcomm Inc. 22.09% 18.07% -21.40% 11.06% 24.22%
Texas Instruments Inc. 38.69% 34.88% 35.35% 24.61% 26.89%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 23.19% 24.52% 27.91% 17.00% 13.76%
Net Profit Margin, Industry
Information Technology 21.95% 22.94% 19.47% 18.48% 18.28%

Based on: 10-K (filing date: 2021-02-26), 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).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,332 ÷ 16,675 = 25.98%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. NVIDIA Corp.’s net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Return on Equity (ROE)

NVIDIA Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Shareholders’ equity 16,893  12,204  9,342  7,471  5,762  4,469 
Profitability Ratio
ROE1 25.64% 22.91% 44.33% 40.78% 28.91% 13.74%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 42.66% 12.06% 26.62% 7.04% -119.47%
Applied Materials Inc. 34.21% 32.94% 48.44% 36.73% 23.85%
Broadcom Inc. 12.40% 10.92% 45.99% 8.34% -9.20%
Intel Corp. 25.79% 27.16% 28.24% 13.91% 15.58%
Lam Research Corp. 64.85% 43.53% 46.89% 36.62% 24.90% 15.51%
Micron Technology Inc. 13.34% 6.89% 17.59% 43.77% 27.33% -2.28%
Qualcomm Inc. 85.54% 89.35% -524.14% 8.02% 17.95%
Texas Instruments Inc. 60.90% 56.33% 62.04% 35.62% 34.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 25.13% 27.58% 34.58% 17.12% 12.93%
ROE, Industry
Information Technology 32.11% 33.34% 31.07% 23.72% 23.14%

Based on: 10-K (filing date: 2021-02-26), 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).

1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 4,332 ÷ 16,893 = 25.64%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. NVIDIA Corp.’s ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Return on Assets (ROA)

NVIDIA Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Net income 4,332  2,796  4,141  3,047  1,666  614 
Total assets 28,791  17,315  13,292  11,241  9,841  7,370 
Profitability Ratio
ROA1 15.05% 16.15% 31.15% 27.11% 16.93% 8.33%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 27.78% 5.66% 7.40% 1.21% -14.97%
Applied Materials Inc. 16.19% 14.22% 18.64% 17.68% 11.80%
Broadcom Inc. 3.90% 4.04% 24.46% 3.11% -3.48%
Intel Corp. 13.65% 15.42% 16.45% 7.79% 9.10%
Lam Research Corp. 24.59% 15.47% 18.26% 19.08% 14.00% 7.45%
Micron Technology Inc. 9.96% 5.01% 12.91% 32.59% 14.40% -1.00%
Qualcomm Inc. 14.60% 13.31% -14.88% 3.77% 10.90%
Texas Instruments Inc. 28.91% 27.84% 32.56% 20.87% 21.88%
ROA, Sector
Semiconductors & Semiconductor Equipment 12.10% 13.80% 18.04% 8.61% 6.85%
ROA, Industry
Information Technology 11.21% 11.86% 10.97% 9.02% 9.47%

Based on: 10-K (filing date: 2021-02-26), 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).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,332 ÷ 28,791 = 15.05%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. NVIDIA Corp.’s ROA deteriorated from 2019 to 2020 and from 2020 to 2021.