NVIDIA Corporation (NVDA)

Inventory turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Cost of revenue	US$ in thousands	32,639,000	16,621,000	16,621,000	11,618,000	11,618,000
Inventory	US$ in thousands	10,080,000	5,282,000	5,282,000	5,159,000	5,159,000
Inventory turnover		3.24	3.15	3.15	2.25	2.25

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $32,639,000K ÷ $10,080,000K
= 3.24

NVIDIA Corporation's inventory turnover has shown a positive trend over the years, indicating an improvement in the efficiency of managing its inventory. The inventory turnover ratio has increased from 2.25 in January 2023 to 3.24 in January 2025.

This signifies that NVIDIA is selling its inventory faster and more frequently compared to previous periods. A higher inventory turnover ratio is generally considered favorable as it suggests that the company is efficiently managing its inventory levels and effectively converting its inventory into sales.

This improvement could be attributed to better inventory management practices, stronger demand for NVIDIA's products, or more effective sales and distribution strategies. Overall, the increasing trend in inventory turnover reflects positively on NVIDIA's operational efficiency and ability to generate sales from its inventory.