NVIDIA Corporation (NVDA)
Receivables turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 60,922,000 | 26,974,000 | 26,914,000 | 16,675,000 | 10,918,000 |
| Receivables | US$ in thousands | 9,999,000 | 3,827,000 | 4,650,000 | 2,429,000 | 1,657,000 |
| Receivables turnover | 6.09 | 7.05 | 5.79 | 6.86 | 6.59 |
January 28, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $60,922,000K ÷ $9,999,000K
= 6.09
The receivables turnover ratio for NVIDIA Corp has shown fluctuations over the past five years. In the most recent fiscal year ending on January 28, 2024, the company's receivables turnover ratio was 6.09, indicating that, on average, the company collected its accounts receivable approximately 6.09 times during the year.
Comparing this to the previous years' data, we observe a downward trend from 2023 to 2022, followed by an increase in 2023 and a decline again in 2024. This fluctuation may suggest changes in the company's credit policies, sales patterns, or collection efficiency.
Overall, a higher receivables turnover ratio is generally preferred as it signifies a company's ability to efficiently collect its receivables and convert them into cash. However, the context of the industry and company-specific factors should also be considered for a comprehensive analysis of the significance of the changes in the receivables turnover ratio for NVIDIA Corp.
Peer comparison
Jan 28, 2024