Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

NVIDIA Corp., profitability ratios

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Return on Sales
Gross profit margin 72.72% 56.93% 64.93% 62.34% 61.99% 61.21%
Operating profit margin 54.12% 15.66% 37.31% 27.18% 26.07% 32.47%
Net profit margin 48.85% 16.19% 36.23% 25.98% 25.61% 35.34%
Return on Investment
Return on equity (ROE) 69.24% 19.76% 36.65% 25.64% 22.91% 44.33%
Return on assets (ROA) 45.28% 10.61% 22.07% 15.05% 16.15% 31.15%

Based on: 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), 10-K (reporting date: 2019-01-27).

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. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. NVIDIA Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. NVIDIA Corp. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. NVIDIA Corp. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
ROA A profitability ratio calculated as net income divided by total assets. NVIDIA Corp. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Gross Profit Margin

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Selected Financial Data (US$ in millions)
Gross profit 44,301 15,356 17,475 10,396 6,768 7,171
Revenue 60,922 26,974 26,914 16,675 10,918 11,716
Profitability Ratio
Gross profit margin1 72.72% 56.93% 64.93% 62.34% 61.99% 61.21%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 46.12% 44.93% 48.25% 44.53% 42.61%
Analog Devices Inc. 64.01% 62.70% 61.83% 65.87% 67.00%
Applied Materials Inc. 46.70% 46.51% 47.32% 44.72% 43.72%
Broadcom Inc. 68.93% 66.55% 61.36% 56.58% 55.24%
Enphase Energy Inc. 46.20% 41.81% 40.12% 44.68% 35.44%
Intel Corp. 40.04% 42.61% 55.45% 56.01% 58.56%
KLA Corp. 59.81% 61.00% 59.93% 57.81% 59.08%
Lam Research Corp. 44.62% 45.69% 46.53% 45.88% 45.15%
Micron Technology Inc. -9.11% 45.18% 37.62% 30.57% 45.72%
ON Semiconductor Corp. 47.06% 48.97% 40.27% 32.65% 35.77%
Qualcomm Inc. 55.70% 57.84% 57.51% 60.67% 64.57%
Texas Instruments Inc. 62.90% 68.76% 67.47% 64.10% 63.71%

Based on: 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), 10-K (reporting date: 2019-01-27).

1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 44,301 ÷ 60,922 = 72.72%

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. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Operating Profit Margin

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Selected Financial Data (US$ in millions)
Operating income 32,972 4,224 10,041 4,532 2,846 3,804
Revenue 60,922 26,974 26,914 16,675 10,918 11,716
Profitability Ratio
Operating profit margin1 54.12% 15.66% 37.31% 27.18% 26.07% 32.47%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 1.77% 5.36% 22.20% 14.02% 9.37%
Analog Devices Inc. 31.07% 27.29% 23.12% 26.74% 28.55%
Applied Materials Inc. 28.86% 30.20% 29.87% 25.37% 22.93%
Broadcom Inc. 45.25% 42.84% 31.03% 16.80% 15.24%
Enphase Energy Inc. 19.46% 19.23% 15.62% 24.07% 16.45%
Intel Corp. 0.17% 3.70% 24.62% 30.41% 30.62%
KLA Corp. 38.06% 39.67% 35.97% 25.87% 30.41%
Lam Research Corp. 29.69% 31.24% 30.64% 26.62% 25.53%
Micron Technology Inc. -36.97% 31.54% 22.68% 14.01% 31.51%
ON Semiconductor Corp. 30.76% 28.34% 19.10% 6.64% 7.84%
Qualcomm Inc. 21.74% 35.88% 29.16% 26.58% 31.59%
Texas Instruments Inc. 41.85% 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 18.87% 27.31% 28.02% 25.44% 27.83%
Operating Profit Margin, Industry
Information Technology 26.31% 28.45% 28.75% 24.95% 25.41%

Based on: 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), 10-K (reporting date: 2019-01-27).

1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 32,972 ÷ 60,922 = 54.12%

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. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Net Profit Margin

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

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Revenue 60,922 26,974 26,914 16,675 10,918 11,716
Profitability Ratio
Net profit margin1 48.85% 16.19% 36.23% 25.98% 25.61% 35.34%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 3.77% 5.59% 19.24% 25.50% 5.07%
Analog Devices Inc. 26.94% 22.88% 19.00% 21.79% 22.75%
Applied Materials Inc. 25.86% 25.31% 25.53% 21.04% 18.52%
Broadcom Inc. 39.31% 34.62% 24.54% 12.39% 12.05%
Enphase Energy Inc. 19.16% 17.05% 10.52% 17.30% 25.81%
Intel Corp. 3.11% 12.71% 25.14% 26.84% 29.25%
KLA Corp. 32.27% 36.06% 30.04% 20.96% 25.73%
Lam Research Corp. 25.88% 26.73% 26.72% 22.42% 22.70%
Micron Technology Inc. -37.54% 28.24% 21.16% 12.54% 26.97%
ON Semiconductor Corp. 26.46% 22.85% 14.98% 4.46% 3.84%
Qualcomm Inc. 20.19% 29.27% 26.94% 22.09% 18.07%
Texas Instruments Inc. 37.16% 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 17.35% 25.41% 25.49% 22.64% 23.97%
Net Profit Margin, Industry
Information Technology 22.13% 24.06% 25.54% 21.37% 22.17%

Based on: 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), 10-K (reporting date: 2019-01-27).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 29,760 ÷ 60,922 = 48.85%

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. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Return on Equity (ROE)

NVIDIA Corp., ROE calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Shareholders’ equity 42,978 22,101 26,612 16,893 12,204 9,342
Profitability Ratio
ROE1 69.24% 19.76% 36.65% 25.64% 22.91% 44.33%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 1.53% 2.41% 42.18% 42.66% 12.06%
Analog Devices Inc. 9.32% 7.54% 3.66% 10.17% 11.64%
Applied Materials Inc. 41.94% 53.51% 48.08% 34.21% 32.94%
Broadcom Inc. 58.70% 50.62% 26.99% 12.40% 10.92%
Enphase Energy Inc. 44.62% 48.13% 33.81% 27.69% 59.20%
Intel Corp. 1.60% 7.90% 20.83% 25.79% 27.16%
KLA Corp. 116.01% 237.04% 61.53% 45.65% 44.21%
Lam Research Corp. 54.94% 73.35% 64.85% 43.53% 46.89%
Micron Technology Inc. -13.22% 17.41% 13.34% 6.89% 17.59%
ON Semiconductor Corp. 28.06% 30.74% 22.02% 6.62% 6.41%
Qualcomm Inc. 33.51% 71.81% 90.88% 85.54% 89.35%
Texas Instruments Inc. 38.53% 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 13.70% 22.90% 25.74% 24.24% 26.53%
ROE, Industry
Information Technology 31.94% 38.70% 42.55% 35.28% 36.69%

Based on: 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), 10-K (reporting date: 2019-01-27).

1 2024 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 29,760 ÷ 42,978 = 69.24%

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. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Return on Assets (ROA)

NVIDIA Corp., ROA calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Total assets 65,728 41,182 44,187 28,791 17,315 13,292
Profitability Ratio
ROA1 45.28% 10.61% 22.07% 15.05% 16.15% 31.15%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.26% 1.95% 25.46% 27.78% 5.66%
Analog Devices Inc. 6.79% 5.46% 2.66% 5.69% 6.37%
Applied Materials Inc. 22.31% 24.41% 22.80% 16.19% 14.22%
Broadcom Inc. 19.33% 15.69% 8.91% 3.90% 4.04%
Enphase Energy Inc. 12.97% 12.88% 7.00% 11.17% 22.59%
Intel Corp. 0.88% 4.40% 11.80% 13.65% 15.42%
KLA Corp. 24.07% 26.37% 20.23% 13.11% 13.05%
Lam Research Corp. 24.02% 26.78% 24.59% 15.47% 18.26%
Micron Technology Inc. -9.08% 13.11% 9.96% 5.01% 12.91%
ON Semiconductor Corp. 16.52% 15.88% 10.49% 2.70% 2.51%
Qualcomm Inc. 14.17% 26.39% 21.93% 14.60% 13.31%
Texas Instruments Inc. 20.12% 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 7.63% 12.74% 13.54% 11.62% 13.15%
ROA, Industry
Information Technology 13.10% 15.14% 15.64% 12.15% 12.81%

Based on: 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), 10-K (reporting date: 2019-01-27).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 29,760 ÷ 65,728 = 45.28%

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. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.