NVIDIA Corporation (NVDA)
Payables 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 |
| Payables | US$ in thousands | 2,699,000 | 1,193,000 | 1,783,000 | 1,149,000 | 687,000 |
| Payables turnover | 6.16 | 9.74 | 5.29 | 5.46 | 6.04 |
January 28, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $16,621,000K ÷ $2,699,000K
= 6.16
The payables turnover ratio for NVIDIA Corp has fluctuated over the past five years. In the most recent fiscal year ending January 28, 2024, the payables turnover ratio was 6.16, indicating that the company converted its accounts payable approximately 6.16 times during that period.
Compared to the previous year, there was a decrease from 9.74 to 6.16 in the payables turnover ratio, suggesting that NVIDIA took longer to pay off its accounts payable relative to the previous year.
Looking back over the five-year period, the payables turnover ratio ranged from a low of 5.23 in January 31, 2021, to a high of 9.74 in January 29, 2023. This indicates varying efficiency in managing its accounts payable during those years.
Overall, NVIDIA's payables turnover ratio indicates the speed at which the company is paying off its suppliers or creditors. A higher turnover ratio generally suggests that the company is managing its payables efficiently by paying its suppliers more quickly. However, fluctuations in the ratio over the years also indicate changes in the company's payment practices and liquidity management. Further analysis and comparison with industry benchmarks may provide additional insights into NVIDIA's payables management strategies.
Peer comparison
Jan 28, 2024