NVIDIA Corporation (NVDA)

Fixed asset turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	60,922,000	44,870,000	32,681,000	25,878,000	26,974,000	28,566,000	29,738,000	29,541,000	26,914,000	24,274,000	21,897,000	19,256,000	16,675,000	14,777,000	13,065,000	11,778,000	10,918,000	10,018,000	10,185,000	10,729,000
Property, plant and equipment	US$ in thousands	3,914,000	3,844,000	3,799,000	3,740,000	3,807,000	3,774,000	3,233,000	2,916,000	2,778,000	2,509,000	2,364,000	2,268,000	2,149,000	2,059,000	1,964,000	1,715,000	1,674,000	1,517,000	1,484,000	1,473,000
Fixed asset turnover		15.57	11.67	8.60	6.92	7.09	7.57	9.20	10.13	9.69	9.67	9.26	8.49	7.76	7.18	6.65	6.87	6.52	6.60	6.86	7.28

January 28, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $60,922,000K ÷ $3,914,000K
= 15.57

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. In the case of NVIDIA Corp, the fixed asset turnover has fluctuated over the past eight quarters, ranging from 15.57 in Q4 2024 to 6.92 in Q1 2024.

A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales, while a lower ratio may suggest inefficiency in asset utilization. In the latest quarter, Q4 2024, NVIDIA achieved a high fixed asset turnover of 15.57, indicating that the company generated $15.57 in sales revenue for every dollar invested in fixed assets.

The trend in fixed asset turnover for NVIDIA shows improvement from the lower ratios in Q1 and Q2 2024, potentially indicating better efficiency in asset management. However, it is important to consider other factors such as industry benchmarks and changes in the company's business operations when interpreting this ratio.

Overall, the fluctuating trend in NVIDIA's fixed asset turnover ratio suggests variable efficiency in utilizing fixed assets to generate sales revenue, emphasizing the need for a holistic analysis of the company's financial performance.