NVIDIA Corporation (NVDA)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	130,497,000	113,269,000	100,290,000	88,370,000	80,446,000	71,850,000	63,254,000	52,326,000	40,257,000	32,801,000	25,225,000	23,964,000	24,617,000	26,854,000	29,211,000	30,923,000	31,862,000	30,677,000	28,896,000	27,760,000
Total current assets	US$ in thousands	80,126,000	67,640,000	59,633,000	53,729,000	44,345,000	44,345,000	32,658,000	32,658,000	28,797,000	28,797,000	24,883,000	23,073,000	23,073,000	23,223,000	23,223,000	27,418,000	29,575,000	29,575,000	28,829,000	28,829,000
Total current liabilities	US$ in thousands	18,047,000	16,479,000	13,969,000	15,223,000	10,631,000	10,631,000	9,101,000	9,101,000	10,334,000	10,334,000	7,260,000	6,563,000	6,563,000	6,855,000	6,855,000	7,573,000	5,562,000	5,562,000	4,335,000	4,335,000
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

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $130,497,000K ÷ ($80,126,000K – $18,047,000K)
= 2.10

Based on the data provided, the working capital turnover ratio for NVIDIA Corporation has shown a fluctuating trend over the period from January 30, 2022, to January 31, 2025. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate revenue.

Initially, from January 30, 2022, to October 30, 2022, the working capital turnover ratio increased steadily from 1.13 to 1.78, indicating an improvement in the efficiency of utilizing working capital during this period. This may suggest that the company was able to efficiently convert its working capital into revenue.

Subsequently, from January 29, 2023, to July 31, 2023, there was a significant jump in the ratio from 1.49 to 2.18, reaching its peak during this period. This surge could signal a more efficient management of working capital to generate higher revenue, possibly due to an improved operational performance or effective utilization of resources.

However, from October 29, 2023, to January 31, 2025, the working capital turnover ratio showed some variability, fluctuating between 2.10 and 2.69. This fluctuation suggests that there may have been changes in the company's operational efficiency or working capital management strategies during this time.

Overall, the increasing trend in the working capital turnover ratio indicates that NVIDIA Corporation has been able to enhance its efficiency in utilizing working capital to drive revenue generation over the analyzed period. However, it is essential to further investigate the factors influencing the fluctuations in the ratio to gain a deeper understanding of the company's financial performance and working capital management practices.