NVIDIA Corp. (NASDAQ:NVDA)

The analysis of the financial ratios over the given periods reveals several noteworthy trends indicating the company's evolving profitability and efficiency.

Gross Profit Margin

The gross profit margin exhibited a generally upward trend, increasing from 61.99% in January 2020 to 74.99% in January 2025. A slight decline is observed in January 2023 where the margin dropped to 56.93%, but it rebounded strongly in the subsequent years, reaching a peak in the latest period. This suggests improved cost management or pricing power over time.

Operating Profit Margin

Operating profit margin showed more volatility compared to gross margin. Starting at 26.07% in January 2020, it increased to a high of 37.31% in January 2022, then sharply declined to 15.66% in January 2023. After this drop, there was a significant recovery, with margins rising to 62.42% by January 2025, the highest level across the periods. This pattern may reflect fluctuations in operating expenses or significant changes in operational efficiency.

Net Profit Margin

Net profit margin trends closely mirrored those of operating margin, beginning at 25.61% in January 2020 and rising to 36.23% in January 2022. The margin then decreased considerably to 16.19% in January 2023 before experiencing a sharp increase to 55.85% by January 2025. This pattern indicates variability in non-operating items or taxes, but overall demonstrates strong growth in net profitability over the period.

Return on Equity (ROE)

ROE showed significant growth over the years, starting from 22.91% in January 2020 and reaching an exceptionally high 91.87% by January 2025. There was a drop to 19.76% in January 2023, followed by a dramatic increase. This suggests enhanced shareholder value generation, possibly driven by higher net income or more efficient use of equity.

Return on Assets (ROA)

Similar to ROE, ROA showed an increasing trend over the period, moving from 16.15% in January 2020 to 65.3% by January 2025. Although there was a decline to 10.61% in January 2023, the subsequent rebound indicates stronger asset utilization and profitability improvements.

Overall, the data highlights a period of volatility around January 2023 with declines across profitability and efficiency metrics. However, the recovery and strong growth observed in the subsequent periods indicate substantial improvements in operational performance, asset efficiency, and profitability, culminating in record high margins and returns by January 2025.

Revenue

The revenue exhibited a strong upward trend over the six-year period. Starting from approximately $10.92 billion in early 2020, revenue climbed steadily each year, reaching around $16.68 billion by early 2021 and then accelerating to about $26.91 billion in early 2022. The revenue remained relatively stable between early 2022 and early 2023, with a slight increase to roughly $26.97 billion. From early 2023 onwards, revenue showed significant growth, more than doubling by early 2024 to approximately $60.92 billion and then more than doubling again to about $130.50 billion by early 2025. This represents a remarkable expansion in sales volume or pricing power.

Gross Profit

Gross profit followed a generally consistent upward trajectory, aligned with revenue growth, but with more pronounced fluctuations in its rate of increase. Beginning at about $6.77 billion in early 2020, gross profit grew to roughly $10.40 billion by early 2021 and surged sharply to about $17.48 billion by early 2022. A decline occurred in 2023 with gross profit dropping to approximately $15.36 billion despite revenue holding steady, indicating margin pressure during that year. However, gross profit rebounded sharply thereafter, reaching an impressive $44.30 billion in early 2024 and further increasing to $97.86 billion by early 2025. This substantial profit growth outpaces revenue growth in the last two years, highlighting improved profitability and operational leverage.

Gross Profit Margin

The gross profit margin showed variability, with an initial upward trend from about 62.0% in early 2020 to nearly 64.9% in early 2022, indicating improved efficiency or product mix favorability. However, in early 2023, the margin declined to approximately 56.9%, suggesting increased costs or pricing pressures during that period despite stable revenues. From early 2023 onwards, margins improved significantly, rising to 72.7% in early 2024 and further to about 75.0% in early 2025. These improved margins demonstrate enhanced profitability and potentially better cost management or a shift toward higher-margin offerings in recent years.

The financial data over the analyzed periods demonstrates significant fluctuations and notable growth in key metrics.

Revenue

The revenue shows a strong upward trend across the years. Starting from approximately 10.9 billion US dollars in early 2020, there is a steady increase to around 16.7 billion in early 2021 and 26.9 billion in early 2022. The revenue then remains relatively stable through early 2023 before more than doubling in the subsequent years, reaching approximately 60.9 billion in early 2024 and peaking at around 130.5 billion in early 2025. This substantial growth indicates a rapidly expanding business and market demand.

Operating Income

Operating income follows a somewhat volatile pattern but with an overall upward trajectory. It increases considerably from 2.8 billion in early 2020 to 4.5 billion in early 2021 and more than doubles to about 10 billion in early 2022. It then declines sharply to approximately 4.2 billion in early 2023 before surging dramatically to nearly 33 billion in early 2024 and further to over 81 billion in early 2025. The fluctuations suggest variable operational efficiency or external influences, but the ultimate rise points to strong profitability gains over the longer term.

Operating Profit Margin

The operating profit margin also exhibits significant variability, with values ranging from 26.1% in early 2020 to a peak of 37.3% in early 2022, indicating strong operational performance. However, it decreases substantially to 15.7% in early 2023, reflecting a drop in profitability relative to revenue. Following this decline, the margin improves dramatically, reaching 54.1% in early 2024 and further increasing to over 62.4% in early 2025. This suggests improved cost management or higher-margin revenue streams in recent periods.

Overall, the data indicates rapid revenue growth accompanied by volatile but ultimately improving operating profitability. The marked increase in operating profit margin in the later years suggests enhanced operational leverage and efficiency, contributing to significantly higher operating income despite earlier periods of margin compression. These trends reflect a strengthening financial position with potential scalability and robust income generation capacity.

The financial data reveals notable trends in net income, revenue, and net profit margin over the six-year period.

Net Income

The net income has displayed a significant upward trajectory from 2,796 million USD in 2020 to 72,880 million USD in 2025. A sharp increase occurred between 2023 and 2024, with net income rising from 4,368 million USD to 29,760 million USD, followed by a further substantial increase to 72,880 million USD in 2025. This indicates strong profitability growth in recent years.

Revenue

Revenue also showed consistent growth throughout the period. It rose from 10,918 million USD in 2020 to 130,497 million USD in 2025. The most pronounced growth phases are between 2021 to 2022 and 2023 to 2024, during which revenue more than doubled each time. This strong revenue expansion supports the company’s increasing net income.

Net Profit Margin

The net profit margin percentage has fluctuated significantly over the years. It started at 25.61% in 2020, increased to 36.23% in 2022, then decreased sharply to 16.19% in 2023. However, margins improved dramatically in the last two years, reaching 48.85% in 2024 and further increasing to 55.85% in 2025. This suggests increased efficiency or higher profitability per dollar of revenue in recent years, aligning with the substantial growth in net income.

Overall, the data depicts a company experiencing rapid growth in both revenue and net income, accompanied by improving profitability as reflected in the rising net profit margins particularly in the later years. The volatility in net profit margins around 2023 may indicate transitional challenges or one-time factors influencing profitability, but the subsequent recovery and improvement highlight accelerating operational performance.

Net Income

The net income exhibits a significant upward trend over the period analyzed. Starting at 2,796 million USD in January 2020, it increases consistently with a notable spike observed in January 2024, reaching 29,760 million USD, and further climbing to 72,880 million USD by January 2025. This indicates a substantial enhancement in profitability over the years, despite some fluctuations such as the dip observed in January 2023.

Shareholders’ Equity

Shareholders’ equity demonstrates a steady increase throughout the period. Beginning at 12,204 million USD in January 2020, it grows to 16,893 million USD in January 2021 and continues to rise each year, reaching 79,327 million USD by January 2025. This reflects an accumulation of retained earnings and possibly additional equity financing, signifying a strengthening financial position.

Return on Equity (ROE)

The ROE shows variability but overall a strong rising trend. Initially, it stands at 22.91% in January 2020, increases moderately to 25.64% in January 2021, and peaks at 36.65% in January 2022. Following a decline to 19.76% in January 2023, there is a remarkable surge to 69.24% in January 2024 and further to 91.87% in January 2025. This suggests improved efficiency in generating profits from equity, especially pronounced in the latest periods.

Summary of Financial Trends

The financial data indicates robust growth in profitability and equity base, with net income and shareholders’ equity both expanding significantly over the analyzed timeline. The elevated ROE in the recent years highlights enhanced capital efficiency. The dip in net income and ROE around January 2023 suggests some volatility or transitional phase, but the subsequent strong recovery points to effective management and improving operational performance overall.

The financial data reveals several notable trends over the analyzed periods. Net income demonstrates significant volatility but overall exhibits strong growth. Beginning at $2,796 million, net income more than doubled by January 31, 2021, and then more than doubled again by January 30, 2022, reaching $9,752 million. Although it sharply declined to $4,368 million by January 29, 2023, it surged impressively to $29,760 million by January 28, 2024, and further increased to $72,880 million by January 26, 2025.

Total assets steadily increased throughout the period, albeit with some variation in growth rate. Starting from $17,315 million, they rose to nearly $28,791 million by January 31, 2021. This upward trend continued, reaching $44,187 million by January 30, 2022, before experiencing a slight reduction to $41,182 million in January 29, 2023. Thereafter, total assets showed robust growth, climbing to $65,728 million by January 28, 2024, and reaching $111,601 million by January 26, 2025.

The return on assets (ROA) ratio reflects varying profitability relative to total assets over the timeframe. Initially, ROA was 16.15% and slightly declined to 15.05% in the subsequent year. The ratio then peaked at 22.07% by January 30, 2022, followed by a notable decrease to 10.61% by January 29, 2023. However, a remarkable increase occurred thereafter, with ROA rising sharply to 45.28% in January 28, 2024, and further climbing to 65.3% by January 26, 2025.

Overall, the financial indicators illustrate a trajectory of substantial growth, especially in recent years, with net income and ROA reaching exceptionally high levels by the end of the analyzed period. The asset base also expanded significantly, supporting the company's increased profitability and operational scale. This pattern suggests enhanced efficiency and effectiveness in asset utilization coupled with impressive income growth, despite some intermittent fluctuations.