NVIDIA Corporation (NVDA)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	3.15	2.83	2.68	2.45	2.25	2.70	3.02	3.25	3.62	3.87	3.75	3.63	3.44	3.69	3.47	3.81	4.24	3.88	3.50	3.04
Receivables turnover	6.09	5.40	4.63	6.34	7.05	5.82	5.59	—	5.79	6.14	—	—	6.86	5.80	6.27	6.18	6.59	6.89	6.52	8.64
Payables turnover	6.16	5.68	5.99	9.91	9.74	8.08	4.86	5.14	5.29	5.19	5.38	5.94	5.47	5.03	5.44	5.65	6.04	6.87	9.66	11.77
Working capital turnover	1.81	1.90	1.77	1.47	1.63	1.75	1.50	1.23	1.10	1.09	1.03	1.36	1.37	1.38	1.06	0.67	0.92	0.92	1.01	1.14

NVIDIA Corp's activity ratios provide insights into how effectively the company manages its assets and liabilities to generate sales and support its operations.

1. Inventory Turnover:
NVIDIA's inventory turnover ratio has been consistently improving over the quarters, indicating that the company is efficiently managing its inventory levels. A higher ratio suggests that NVIDIA is selling its products more frequently, which is positive for the company's cash flow and profitability.

2. Receivables Turnover:
The receivables turnover ratio demonstrates how quickly NVIDIA collects payments from its customers. The trend shows fluctuations, with the ratio decreasing in Q2 2024 before increasing in Q3 and Q4 2024. A higher receivables turnover ratio indicates better efficiency in collecting outstanding payments, which is favorable for liquidity.

3. Payables Turnover:
NVIDIA's payables turnover ratio has displayed variability, with a notable decline in Q1 2024. This ratio reflects how quickly the company settles its payables to suppliers. The decrease in Q1 2024 could indicate a change in payment terms or vendor relationships. Overall, a higher payables turnover ratio suggests efficient management of trade credit.

4. Working Capital Turnover:
The working capital turnover ratio provides insight into how efficiently NVIDIA utilizes its working capital to generate sales. The trend shows some fluctuations but generally maintains a stable range. A higher turnover ratio indicates that the company is effectively utilizing its working capital to support operations and drive revenue growth.

In summary, while some fluctuations are observed in NVIDIA Corp's activity ratios, the overall picture suggests that the company is effectively managing its assets and liabilities to support its operations and enhance financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	115.99	128.95	136.36	148.87	162.08	134.98	120.68	112.47	100.72	94.30	97.22	100.48	106.13	98.80	105.33	95.70	86.10	94.17	104.14	120.21
Days of sales outstanding (DSO)	days	59.91	67.59	78.92	57.55	51.79	62.71	65.26	—	63.06	59.45	—	—	53.17	62.89	58.22	59.10	55.40	53.01	55.94	42.25
Number of days of payables	days	59.27	64.22	60.90	36.84	37.48	45.19	75.13	71.08	68.94	70.27	67.79	61.44	66.78	72.50	67.14	64.57	60.42	53.16	37.80	31.02

Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its inventory. A decreasing trend in DOH indicates efficient inventory management. NVIDIA Corp's DOH has been fluctuating over the past eight quarters, with a peak of 162.08 days in Q4 2023 and a low of 112.48 days in Q1 2023.

Days of Sales Outstanding (DSO) reflects how long it takes for a company to collect cash from its credit sales. A lower DSO is preferable as it indicates quicker cash conversion. NVIDIA Corp's DSO has varied over the quarters, with a notable increase in Q2 2024 to 78.92 days compared to the low of 51.79 days in Q4 2023.

Number of Days of Payables measures how long a company takes to pay its suppliers. A high number of days implies a favorable situation for the company to hold onto cash longer. NVIDIA Corp's payables days have been fluctuating, reaching a low of 36.84 days in Q1 2024 and a high of 75.14 days in Q2 2023.

Overall, NVIDIA Corp's activity ratios suggest fluctuations in inventory management, collection of receivables, and payment to suppliers. It is important for the company to monitor these ratios to ensure efficient working capital management and operational performance.

Long-term

	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
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
Total asset turnover	0.93	0.83	0.66	0.58	0.65	0.71	0.68	0.65	0.61	0.60	0.57	0.63	0.58	0.55	0.52	0.51	0.63	0.63	0.69	0.77

NVIDIA Corp's long-term activity ratios reflect the efficiency of the company in utilizing its assets to generate sales. The fixed asset turnover ratio has shown an increasing trend over the quarters, indicating that the company has been able to generate more revenue per dollar invested in fixed assets. This suggests that NVIDIA has been effectively leveraging its long-term assets, such as property, plant, and equipment, to drive sales.

On the other hand, the total asset turnover ratio has fluctuated over the quarters but generally remained relatively stable. This ratio measures the company's ability to generate sales from all its assets, including both short-term and long-term assets. The ratio below 1 indicates that NVIDIA is not fully utilizing its total assets to generate sales, which could imply that the company may have excess assets or inefficiencies in asset usage.

Overall, the increasing trend in the fixed asset turnover ratio suggests that NVIDIA is efficiently utilizing its long-term assets to drive sales, while the total asset turnover ratio indicates room for improvement in optimizing the utilization of all assets to generate revenue. Further analysis of the company's asset management strategies and operational efficiency may be required to enhance overall performance in this area.