NVIDIA Corporation (NVDA)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	7.19	—	6.30	—	4.64	—	—	6.43	—	5.95	—	—	—	—	5.97
Payables turnover	—	—	—	—	—	6.96	—	6.45	—	5.72	—	—	9.65	—	8.22	—	5.50	—	—	5.44
Working capital turnover	2.10	2.21	2.20	2.29	2.39	2.13	2.69	2.22	2.18	1.78	1.43	1.45	1.49	1.64	1.78	1.56	1.33	1.28	1.18	1.13

Activity ratios provide insights into how effectively a company is managing its assets and operations. Let's analyze the activity ratios of NVIDIA Corporation based on the provided data:

1. Inventory Turnover Ratio: This ratio indicates how many times a company sells and replaces its inventory during a period. NVIDIA's inventory turnover ratio fluctuated over the analyzed period, ranging from 1.93 to 3.86. A higher ratio generally indicates efficient inventory management.

2. Receivables Turnover Ratio: The receivables turnover ratio measures how efficiently a company collects cash from its credit sales. NVIDIA's data shows inconsistent reporting of this ratio, with values available for limited periods. A higher ratio suggests effective credit management.

3. Payables Turnover Ratio: The payables turnover ratio signifies how quickly a company pays its suppliers. NVIDIA's payables turnover ratio varied over time, but the company seems to maintain a relatively steady payment cycle based on the available data.

4. Working Capital Turnover Ratio: This ratio reflects how efficiently a company utilizes its working capital to generate sales. NVIDIA's working capital turnover ratio improved gradually over the analyzed period, indicating better utilization of working capital to drive revenue.

In conclusion, from the activity ratios analysis, it appears that NVIDIA Corporation has shown fluctuations in its inventory turnover, while demonstrating relatively stable payables turnover and improving working capital turnover over time. The inconsistent reporting of receivables turnover limits a comprehensive evaluation in this area.

Average number of days

		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
Days of inventory on hand (DOH)	days	112.73	102.18	102.68	102.01	96.09	102.57	99.51	113.61	122.66	142.99	172.90	189.36	163.53	133.76	132.64	116.86	104.94	108.74	94.59	98.02
Days of sales outstanding (DSO)	days	—	—	—	—	—	50.80	—	57.96	—	78.63	—	—	56.74	—	61.33	—	—	—	—	61.14
Number of days of payables	days	—	—	—	—	—	52.41	—	56.58	—	63.86	—	—	37.82	—	44.40	—	66.32	—	—	67.09

Based on the provided data for NVIDIA Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH for NVIDIA has shown fluctuating trends over the period.
- It peaked in January 2023 at 189.36 days and has since been declining.
- A high DOH indicates slower inventory turnover, which may tie up working capital and lead to potential obsolescence risks.
- The decreasing trend post-January 2023 suggests improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The DSO data shows incomplete information, with many missing values.
- DSO represents the average number of days it takes for a company to collect revenue after a sale is made.
- Consistently high DSO could indicate issues with credit policies or difficulties in collecting receivables.
- The decreasing trend observed in the available data could indicate better collections management.

3. Number of Days of Payables:
- The data indicates the number of days a company takes to pay its suppliers.
- NVIDIA's payables period has varied over time, with some periods not reported.
- A shorter payables period may suggest better cash management but could also indicate strained supplier relationships.
- The declining trend post-July 2022 indicates the company is taking longer to pay its suppliers.

In summary, NVIDIA's activity ratios provide insights into its inventory management, receivables collection efficiency, and payment practices. The trends observed in these ratios can help assess the company's operational performance and financial health over time.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	18.36	—	13.61	10.60	8.63	6.74	6.29	6.47	5.71	7.74	7.57	10.93	10.52	8.01	9.99
Total asset turnover	1.17	1.18	1.18	1.15	1.22	1.09	1.17	0.97	0.81	0.66	0.57	0.58	0.60	0.66	0.72	0.71	0.70	0.68	0.65	0.63

The fixed asset turnover ratio for NVIDIA Corporation has shown some fluctuations over the years, ranging from 5.71 to 18.36. This ratio measures the efficiency of the company's fixed assets in generating sales revenue, with higher values indicating better asset utilization.

On the other hand, the total asset turnover ratio has generally been increasing from 0.63 to 1.17. This ratio reflects how efficiently the company utilizes all its assets to generate revenue. The increasing trend implies that NVIDIA has been more effective in using its total assets to generate sales over time.

Overall, the data suggests that NVIDIA has been improving its efficiency in utilizing both fixed and total assets to generate revenue, which is a positive sign for the company's long-term operational performance.