NVIDIA Corporation (NVDA)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	60,922,000	44,870,000	32,681,000	25,878,000	26,974,000	28,566,000	29,738,000	29,541,000	26,914,000	24,274,000	21,897,000	19,256,000	16,675,000	14,777,000	13,065,000	11,778,000	10,918,000	10,018,000	10,185,000	10,729,000
Total current assets	US$ in thousands	44,345,000	32,658,000	28,797,000	24,883,000	23,073,000	23,223,000	27,418,000	29,575,000	28,829,000	25,806,000	25,806,000	18,127,000	16,055,000	14,393,000	14,681,000	19,584,000	13,690,000	12,420,000	11,391,000	10,629,000
Total current liabilities	US$ in thousands	10,631,000	9,101,000	10,334,000	7,260,000	6,563,000	6,855,000	7,573,000	5,562,000	4,335,000	3,612,000	4,448,000	4,004,000	3,925,000	3,669,000	2,410,000	1,903,000	1,784,000	1,475,000	1,317,000	1,183,000
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

January 28, 2024 calculation

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

Working capital turnover is a ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively managing its working capital to support its operations.

Based on the data provided for NVIDIA Corp, we can observe fluctuations in the working capital turnover ratio over the past eight quarters. In Q4 2024, the working capital turnover ratio was 1.81, which decreased slightly from Q3 2024 but remained relatively stable compared to previous quarters.

The trend in the working capital turnover ratio for NVIDIA Corp shows some variability, with fluctuations in the efficiency of working capital utilization. It peaked at 1.90 in Q3 2024, indicating a temporary increase in efficiency, but then declined in subsequent quarters.

Overall, the average working capital turnover for NVIDIA Corp over the past eight quarters is moderate, indicating that the company is reasonably effective in utilizing its working capital to support its sales revenue. However, management may need to closely monitor and potentially improve this ratio to ensure optimal efficiency in working capital management.