NVIDIA Corp. (NASDAQ:NVDA)

Inventory Turnover

The inventory turnover ratio demonstrates a fluctuating but generally declining trend from a high of 4.24 to a low near 2.25, indicating a slowing rate of inventory movement. However, more recently, there is a recovery trend where turnover increases again approaching values above 3.0, suggesting improved inventory management or stronger sales in later periods.

Receivables Turnover

Receivables turnover shows variability with values mostly oscillating between 5 and 7. There is a notable dip to about 4.63 in one period, implying slower collection cycles, but it generally recovers close to prior levels. These variations suggest fluctuating efficiency in collecting receivables over time.

Payables Turnover

Payables turnover reflects a volatile pattern, ranging from about 4.86 up to a peak around 9.91. The high peaks indicate periods of faster payments to suppliers, while the lower values suggest slower payment cycles. This variation may reflect changes in supplier payment terms or cash management strategies.

Working Capital Turnover

Working capital turnover ratio gradually increases from below 1.0 to over 2.0 across the periods, indicating improved efficiency in utilizing working capital to generate sales. This suggests that the company is enhancing its operational efficiency in managing short-term assets and liabilities.

Average Inventory Processing Period

The average inventory processing period shows a steady increase from around 86 days up to a peak of approximately 162 days before declining to the low hundreds again. The initial increase indicates longer holding of inventory, which may point to slower sales or overstocking, with more recent periods showing improved inventory processing speed.

Average Receivable Collection Period

The average receivable collection period mostly ranges between 50 and 70 days, with a pronounced spike to around 79 days in one period. This suggests that at times the company experiences a slowdown in collecting receivables, potentially impacting cash inflows.

Operating Cycle

The operating cycle extends from about 141 days to over 214 days, with some fluctuation. The longer cycles correlate with increased inventory and receivable periods, indicating a longer time to convert inventory and receivables back into cash. This reflects a more extended cash-to-cash operating process in some periods.

Average Payables Payment Period

This metric varies significantly from around 37 days up to 75 days, showing changing payment behaviors to suppliers. Shorter periods imply faster payments, while longer periods suggest stretching of payables possibly to conserve cash or negotiate better terms.

Cash Conversion Cycle

The cash conversion cycle shows an upward trend initially, peaking at 177 days, then reducing to lower values in later periods. The increase indicates that the time to convert investments in inventory and receivables into cash lengthens, which can strain liquidity. The subsequent reduction suggests improved cash flow management and operational efficiency toward the more recent quarters.

Cost of Revenue Trend

The cost of revenue exhibits a general upward trajectory over the periods analyzed, increasing from $924 million in April 2019 to a peak of approximately $17,394 million by October 2024. Notably, there are fluctuations along this upward path, including a significant decline from $3,789 million in July 2022 to $2,754 million in October 2022, followed by subsequent rises and sharper increases past July 2023. This rise reflects an expansion in production or sales activities, suggesting growing operational scale or increased costs associated with revenue generation.

Inventories Movement

Inventories also show an overall growth pattern, starting at $1,426 million in April 2019 and reaching $14,962 million by July 2025. The increase is steady and marked by consistent accumulation, with occasional corrections such as the drop from $5,159 million in January 2023 to $4,611 million in April 2023. The continual buildup of inventories implies either anticipation of higher sales volumes or slower inventory turnover during some intervals.

Inventory Turnover Ratio Analysis

The inventory turnover ratio indicates the rate at which inventory is sold and replaced. Initially absent in the dataset, values appear from January 2020 onward, starting at 4.24 and demonstrating a declining trend until January 2023, where the ratio hits its lowest point at 2.25. Following this low, the ratio gradually improves and fluctuates between approximately 2.7 and 3.92 in later periods. This declining then recovering movement suggests a period of slower inventory movement followed by improved efficiency in managing and selling available stock.

Integrated Insights

The combination of increasing cost of revenue and growing inventories along with a decreasing then slightly recovering inventory turnover ratio suggests the company experienced phases of rapid expansion that may have temporarily outpaced its sales velocity or inventory management efficiency. The large inventory accumulation combined with slower turnover potentially points to cautious stockpiling or challenges in inventory disposal during peak growth phases. The subsequent improvement in turnover ratio indicates efforts to better align inventory levels with actual sales, enhancing operational efficiency.

Revenue Trends

Revenue exhibited a general upward trajectory over the observed periods, increasing from 2,220 million USD in April 2019 to a peak of 44,743 million USD projected for July 2025. Notable acceleration occurred from May 2021 onward, with revenue more than doubling between May 2021 (5,661 million USD) and July 2024 (30,040 million USD). Temporary declines were observed around mid-2022, with revenue dipping from 8,288 million USD in May 2022 to 5,931 million USD in October 2022, before resuming growth.

Accounts Receivable Movement

Accounts receivable generally trended upward, moving from 1,242 million USD in April 2019 to a projected 27,808 million USD by July 2025. There were fluctuations, including a decrease from 5,438 million USD in May 2022 to 3,827 million USD in January 2023. However, subsequent periods showed substantial increases, especially post-May 2023, evidencing acceleration in receivables consistent with the revenue growth.

Receivables Turnover Ratio Analysis

The receivables turnover ratio fluctuated within a range of approximately 4.63 to 7.05 over the periods observed. The ratio was highest in January 2023 (7.05) and lowest around July 2023 (4.63), indicating some variability in the efficiency of receivables collection. Despite these fluctuations, turnover generally remained stable around a value of 6.0, suggesting consistent credit management performance relative to sales levels. The lower turnover in mid-2023 corresponds with higher accounts receivable balances, aligning with the rapid revenue increases.

Overall Observations

The data indicates strong revenue growth accompanied by increasing accounts receivable, suggesting expansion but also rising credit sales or extended collection periods. Receivables turnover ratio variability points to changes in collection efficiency or credit terms in some periods, particularly notable during rapid revenue expansions. The mid-2022 decrease in revenue and receivables balances may reflect a transient slowdown or seasonal impact, followed by resumed growth.

The financial data for the analyzed periods reveals several noteworthy trends in cost of revenue, accounts payable, and payable turnover ratios.

Cost of Revenue

The cost of revenue shows a general upward trend over the full time span, increasing from $924 million in April 2019 to a peak of $17,394 million in April 2025, followed by a decline to $12,890 million in July 2025. Significant periods of growth are observed particularly from early 2021 onwards, with marked jumps around mid-2022 and again approaching 2025. The sharp rises indicate potential expansion in production, sales volume, or increased input costs.

Accounts Payable

Accounts payable also trend upwards broadly, growing from $368 million in April 2019 to $9,064 million by July 2025. There are some fluctuations, such as a noticeable dip between May 2022 and January 2023, followed by a rapid rebound and continued increase thereafter. The increase in payables generally supports the expanding operational scale suggested by the rising cost of revenue, indicating potentially extended payment terms or increased procurement activity.

Payables Turnover Ratio

The payables turnover ratio, indicative of how quickly payables are settled, fluctuates over time without a consistent directional trend. Early values in 2020 exhibit ratios around 5.0 to 6.0, declining slightly mid-2022 before reaching elevated peaks near 8.0 to 9.9 in early 2023. Following this, the ratio declines again into the 5.0 to 6.0 range towards mid-2025. These oscillations suggest varying payment practices or changes in supplier terms, with peaks indicating faster settlement of payables during those quarters.

Overall, the data reflects growth in operational scale as seen in rising cost of revenue and accounts payable balances, with fluctuating payables turnover ratios that imply shifts in payment efficiency or negotiation of supplier credit terms across different quarters.

Working Capital

The working capital exhibits an overall upward trend from April 2019 through July 2025. Initial figures start at 9,446 million US dollars in April 2019, with some fluctuations but generally increasing over time. Notably, there is a substantial jump from 16,510 million in January 2023 to 33,714 million in April 2024, with continued growth reaching 77,962 million by July 2025. This suggests a significant increase in short-term assets relative to liabilities, possibly indicating improved liquidity or expanded operational scale over the observed periods.

Revenue

Revenue shows consistent growth with some periods of volatility over the examined timeline. From 2,220 million US dollars in April 2019, revenue increases steadily with minor fluctuations, peaking notably in July 2023 at 22,103 million and continuing to rise thereafter. The highest reported revenue is 46,743 million in July 2025. The data reflects strong sales momentum, particularly from mid-2021 onward, where revenue nearly doubles within two years. Some decreases are observed, such as the dip in revenue from 8,288 million in May 2022 to 5,931 million in October 2022, potentially reflecting seasonal or market-driven effects.

Working Capital Turnover

The working capital turnover ratio, available from January 2020 onward, illustrates trends in operational efficiency relative to working capital investment. Starting at 0.92, this ratio initially declines to 0.67 in April 2020, then improves steadily, reaching values above 2 from April 2024 forward. This increase indicates enhanced effectiveness in generating revenue from working capital. The ratio’s rise suggests that the company has improved how efficiently it utilizes working capital to produce sales, notably doubling the turnover ratio within four years.

Overall Analysis

The dataset reveals a company experiencing robust growth in both working capital and revenue over time. The consistent increase in working capital supports expanded operations and potentially reflects stronger liquidity. Meanwhile, revenue growth is sustained with significant acceleration in recent years, highlighting strong market performance or product demand. The improving working capital turnover ratio complements these trends by indicating heightened operational efficiency in converting working capital into revenue. While some fluctuations in revenue suggest variability in sales cycles, the long-term trajectory points to positive financial development and improved resource management.

Inventory Turnover Ratio

The inventory turnover ratio displays a general declining trend from the earliest provided data point in April 2020 through early 2023. Starting at 4.24, it decreased steadily to a low of 2.25 by October 2022. After this period, it shows a gradual recovery, rising to 3.92 by April 2024. However, fluctuations continue with the ratio dropping to 3.33 by July 2025. This pattern suggests a period of slower inventory movement followed by some improvement, indicating changes in inventory management or sales volumes across these quarters.

Average Inventory Processing Period (Number of Days)

This metric inversely correlates with the inventory turnover ratio, reflecting the days inventory remains before being sold or processed. It increased steadily from 86 days in April 2020 to a peak of 162 days by January 2023. This increase corresponds with the observed decrease in inventory turnover, indicating prolonged inventory holding times. Subsequently, there is a decline to 93 days by April 2024, signaling improved efficiency in inventory processing. However, a slight increase to 110 days by July 2025 suggests some variability in this recovery phase.

Overall Insights

The trends in inventory turnover and average inventory processing period suggest that the company experienced a phase of reduced inventory efficiency and slower sales or production cycles up to early 2023. After this point, improvements are evident, with inventory management becoming more effective, as reflected in the partial recovery of turnover ratios and the reduced processing period. Despite this, the end of the examined timeframe demonstrates some instability, emphasizing the need for continued monitoring and possibly strategic adjustments to maintain inventory optimization.

The analysis of the receivables turnover ratio over the available periods reveals a fluctuating trend with values generally ranging between approximately 4.6 and 7.1. Initially, the ratio showed a gradual decline from 6.59 to around 5.79 over several quarters, indicating a slight decrease in the efficiency of collecting receivables. This trend is reflected inversely in the average receivable collection period, which increased from around 55 days to a peak near 67 days during this time frame, suggesting that customers took longer to pay on average.

Following this period, the receivables turnover experienced some recovery, rising to over 7.0 in the quarter ending May 2, 2021, which corresponds with a reduction in the average collection period to approximately 52 days. This improvement suggests enhanced collection efficiency during that quarter.

However, there was a notable drop in turnover to as low as 4.63 in the quarter ending July 30, 2023, which corresponds with a significant increase in the average collection period to 79 days. This indicates a period where receivables were collected much more slowly, potentially signaling challenges in credit management or changes in customer payment behavior.

In later periods, the turnover ratio gradually recovered again, fluctuating between about 5.4 and 6.8, while the collection period decreased correspondingly, ranging mostly between 54 and 65 days. This pattern suggests a stabilization phase where collection times remained relatively controlled but not as efficient as during the peak turnover periods.

Overall, the data indicates cyclical variations in receivables management efficiency, with periods of improved collection contrasting with intervals of slower receivables turnover and longer collection times. These fluctuations could be influenced by external economic conditions, company credit policies, or customer payment capabilities.

Receivables Turnover Ratio

Varied between approximately 4.63 and 7.05, with periods of decline followed by recovery.

Average Receivable Collection Period

Ranged from around 52 days to a peak of 79 days, exhibiting inverse movement relative to turnover ratio.

Trend Insights

Periods of lower turnover coincide with longer collection periods, suggesting reduced receivables management efficiency during those quarters. The data reflects cyclical changes implying challenges and recoveries in managing customer payment cycles over time.

The data presents the trends in inventory processing period, receivable collection period, and operating cycle over multiple quarters for the subject company.

Average Inventory Processing Period

The average inventory processing period shows a general increasing trend from 86 days in early 2020 to a peak of 162 days in early 2023. Following this peak, there is a gradual decline observed, reaching 93 days by mid-2024, with a slight increase noted toward the most recent quarter. This pattern suggests an initial lengthening in the time inventory remains before processing, possibly indicating supply chain or production challenges, followed by improvements or efficiency gains in inventory management in recent periods.

Average Receivable Collection Period

The average receivable collection period fluctuates moderately around the 55 to 65 days range for most periods, with notable spikes in early 2023 and mid-2023, reaching as high as 79 days. After the peak, the period decreases again toward values near 54-61 days in the most recent quarters. These variations indicate intermittent challenges in receivable collections, potentially reflecting changes in credit policies, customer payment behavior, or economic conditions impacting timely payments.

Operating Cycle

The operating cycle, representing the total time from inventory acquisition to cash collection, shows a rising trend starting around 141 days in early 2020, peaking at approximately 215 days around early 2023. Subsequently, it declines to about 147 days by mid-2024 but increases again toward the end of the dataset. The prolonged operating cycle aligns with the extended inventory and receivable periods observed earlier, suggesting a temporary elongation of working capital turnover. The later reduction indicates an overall improvement in the management of both inventory and receivables, although the last upward movement could signal emerging operational tensions.

The payables turnover ratio exhibits variability over the observed periods, with a general pattern of fluctuation rather than a steady trend. Initially, the ratio fluctuates around values slightly above 5, indicating a moderate pace of payables turnover. Notably, there is a peak observed around the periods corresponding to April and July 2023, with the ratio increasing to above 9, which suggests a significantly faster turnover during these quarters. This peak is followed by a decline, returning to values closer to the initial range above 5 by the later periods in 2024 and early 2025.

Correspondingly, the average payables payment period, expressed in days, shows an inverse relationship relative to the payables turnover ratio. The payment period generally increases in the early part of the timeline, reaching a high around 70 to 75 days in several quarters preceding the peak in turnover ratio. Around April and July 2023, the payment period drops sharply to approximately 37 days, coinciding with the observed increase in turnover ratio, indicating quicker payments made to suppliers during these intervals. Subsequent periods display a return to a longer average payment period, fluctuating around 60 to 70 days.

Payables Turnover Ratio

Fluctuates mostly between 5 and 6 in early and later periods, with a pronounced peak near 9.7 during mid-2023, indicating faster settlement of payables.

Average Payables Payment Period

Varies inversely with turnover ratio, with longer payment periods (around 70+ days) when turnover is lower, and a notable decrease to around 37 days concurrent with peak turnover, suggesting accelerated payment activity.

The observed relationship between these two metrics implies that the company adjusted its payment policies dynamically across quarters. The significant increase in payables turnover ratio and the corresponding reduction in payment days in mid-2023 may reflect strategic efforts to manage supplier relationships or cash flow more aggressively. Following that period, a reversion toward longer payment periods and lower turnover ratios could indicate a normalization or a shift back to more extended payment terms.

Overall, the data indicate variable payment behavior with periods of expedited payments offset by intervals of extended credit, highlighting a flexible approach toward managing payables over the analyzed timeframe.

The analysis of the quarterly financial data reveals several important trends in working capital management metrics over the examined periods.

Average Inventory Processing Period

The average inventory processing period exhibits a general upward trend over time, increasing from the mid-80s in early observations to peaks exceeding 160 days around early 2023. Following this peak, there is a gradual decline with some fluctuations, but the period remains elevated relative to the initial values. This suggests that inventory turnover has slowed significantly during the middle periods before showing signs of improvement more recently.

Average Receivable Collection Period

The average receivable collection period fluctuates moderately over the quarters, ranging mostly between the low 50s and high 60s in number of days. There are sporadic increases, particularly a notable spike nearing 79 days, indicating some variability in how quickly receivables are collected. Despite these fluctuations, no sustained upward or downward trajectory is clearly evident, implying relatively stable accounts receivable collection efficiency with occasional disruptions.

Average Payables Payment Period

The average payables payment period shows variability with an initial upward movement from around 60 days to a high of 75 days, then a sharp reduction to the mid-30s in subsequent periods, followed by a recovery toward the 60s and occasional dips. This pattern suggests a period of faster payment to suppliers followed by a resumption of longer payment cycles. The fluctuations may reflect changing supplier payment policies or cash management strategies.

Cash Conversion Cycle (CCC)

The cash conversion cycle exhibits a notable increase from approximately 80 days to a peak near 177 days, mirroring the trend seen in inventory processing periods and supported by shifts in receivable and payable periods. After reaching high levels, the CCC starts to decline but remains above the initial baseline values. This indicates that the company experienced lengthened cash conversion cycles for a period, implying more cash tied up in the operating cycle, and later efforts appear to have shortened it somewhat, although not reverting fully to earlier levels.

In summary, the data reveal that the company faced lengthening cycles in inventory turnover and overall cash conversion during the middle periods analyzed, signaling slower cash flow through operations. Receivables collection showed moderate variability without a clear trend, while payables payments fluctuated significantly, possibly revealing adjustments in supplier payment terms. The recent periods suggest a gradual improvement in these cycles, indicating initiatives or market conditions contributing to better working capital efficiency.