Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
NVIDIA Corp., profitability ratios
Based on: 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
| 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 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. 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. 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. 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. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |
Gross Profit Margin
NVIDIA Corp., gross profit margin calculation, comparison to benchmarks
| 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. | 47.32% | 44.72% | 43.72% | 45.31% | 44.93% | 41.67% | |
| Broadcom Inc. | 61.36% | 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. | 57.51% | 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 (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
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. 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
| 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. | 29.87% | 25.37% | 22.93% | 27.80% | 26.61% | 19.88% | |
| Broadcom Inc. | 31.03% | 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. | 29.16% | 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 (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
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. 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
| 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. | 25.53% | 21.04% | 18.52% | 19.20% | 23.62% | 15.90% | |
| Broadcom Inc. | 24.54% | 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. | 26.94% | 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 (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
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. 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
| 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. | 48.08% | 34.21% | 32.94% | 48.44% | 36.73% | 23.85% | |
| Broadcom Inc. | 26.99% | 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. | 90.88% | 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 (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
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. 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
| 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. | 22.80% | 16.19% | 14.22% | 18.64% | 17.68% | 11.80% | |
| Broadcom Inc. | 8.91% | 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. | 21.93% | 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 (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31).
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. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |