NVIDIA Corporation (NVDA)

Working capital 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
Total current assets	US$ in thousands	44,345,000	23,073,000	28,829,000	16,055,000	13,690,000
Total current liabilities	US$ in thousands	10,631,000	6,563,000	4,335,000	3,925,000	1,784,000
Working capital turnover		1.81	1.63	1.10	1.37	0.92

January 28, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $60,922,000K ÷ ($44,345,000K – $10,631,000K)
= 1.81

NVIDIA Corp's working capital turnover has shown a fluctuating trend over the past five years, indicating variations in its efficiency in utilizing its working capital to generate sales revenue. The working capital turnover ratio has increased from 0.92 in January 2020 to 1.81 in January 2024. This upward trend suggests that the company has improved its ability to generate sales revenue relative to its working capital base.

However, it's worth noting that there were fluctuations in the years in between. The ratio was relatively stable from January 2020 to January 2021 before increasing significantly in January 2022, then decreasing in January 2023, and finally reaching its highest point in January 2024. These fluctuations may reflect changes in the company's operating efficiency, sales growth, or working capital management practices during the period.

Overall, a higher working capital turnover ratio indicates that NVIDIA Corp is effectively using its working capital to support sales activities. It implies that the company is efficiently managing its current assets and liabilities to drive revenue generation. However, further analysis and scrutiny of the company's financial performance and operational strategies would be necessary to gain a deeper understanding of the factors driving these changes in the working capital turnover ratio over the years.