NVIDIA Corporation (NVDA)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Cost of revenue (ttm)	US$ in thousands	32,638,000	27,342,000	23,728,000	20,982,000	20,064,000	18,797,000	17,530,000	15,354,000	12,852,000	11,025,000	9,734,000	9,944,000	11,515,000	12,154,000	12,257,000	12,147,000	11,002,000	10,617,000	10,052,000	9,700,000
Inventory	US$ in thousands	10,080,000	7,654,000	6,675,000	5,864,000	5,282,000	5,282,000	4,779,000	4,779,000	4,319,000	4,319,000	4,611,000	5,159,000	5,159,000	4,454,000	4,454,000	3,889,000	3,163,000	3,163,000	2,605,000	2,605,000
Inventory turnover		3.24	3.57	3.55	3.58	3.80	3.56	3.67	3.21	2.98	2.55	2.11	1.93	2.23	2.73	2.75	3.12	3.48	3.36	3.86	3.72

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $32,638,000K ÷ $10,080,000K
= 3.24

The inventory turnover ratio for NVIDIA Corporation has fluctuated over the past few years, indicating the efficiency with which the company manages its inventory. The ratio ranged from 1.93 to 3.86 during the specified period. Generally, a higher inventory turnover ratio is preferred as it suggests that the company is selling its inventory more quickly.

Analyzing the trend, we can observe that the inventory turnover ratio initially decreased from 3.86 in January 2022 to 2.23 in January 2023, indicating a potential slowdown in inventory management efficiency. However, there was a subsequent increase in the ratio, reaching 3.67 in October 2023, suggesting an improvement in managing inventory levels.

Overall, the latest inventory turnover ratio of 3.24 as of January 2025 indicates that NVIDIA Corporation is efficiently managing its inventory turnover, although there have been fluctuations in the ratio over the analyzed period. It is important for the company to continuously monitor and optimize its inventory management practices to ensure optimal utilization of resources and maintain healthy operational efficiency.