NVIDIA Corporation (NVDA)
Inventory turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,621,000 | 11,618,000 | 9,439,000 | 6,279,000 | 4,150,000 |
| Inventory | US$ in thousands | 5,282,000 | 5,159,000 | 2,605,000 | 1,826,000 | 979,000 |
| Inventory turnover | 3.15 | 2.25 | 3.62 | 3.44 | 4.24 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,621,000K ÷ $5,282,000K
= 3.15
The inventory turnover ratio for NVIDIA Corp has fluctuated over the past five years, ranging from a low of 2.25 in January 2023 to a high of 4.24 in January 2020. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. In general, the trend of increasing inventory turnover over the years is a positive indicator of better inventory management. However, the significant variation in the ratio from year to year suggests that NVIDIA Corp may have experienced fluctuations in sales and inventory levels, which could be influenced by factors such as demand for their products and production efficiency. Overall, while the company has shown an improvement in inventory turnover compared to previous years, it would be worthwhile to continue monitoring this ratio to ensure optimal inventory management practices.
Peer comparison
Jan 28, 2024