NVIDIA Corporation (NVDA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.17 | 3.59 | 2.79 | 3.43 | 3.52 | 3.39 | 3.62 | 5.32 | 6.65 | 7.14 | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | 7.67 | 8.42 | 8.65 | 8.98 |
| Quick ratio | 3.38 | 2.92 | 2.23 | 2.67 | 2.61 | 2.63 | 2.95 | 3.66 | 5.96 | 6.44 | 4.42 | 3.16 | 3.56 | 3.46 | 5.42 | 9.60 | 7.04 | 7.61 | 7.62 | 7.64 |
| Cash ratio | 2.44 | 2.01 | 1.55 | 2.11 | 2.03 | 1.92 | 2.25 | 3.66 | 4.89 | 5.34 | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | 6.11 | 6.62 | 6.44 | 6.60 |
Based on the liquidity ratios for NVIDIA Corp over the past eight quarters, the company's current ratio has been relatively consistent, ranging from 2.79 to 4.17. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign for short-term financial health. The current ratio above 3 across most quarters indicates that NVIDIA has ample current assets to cover its short-term obligations.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also shows a similar trend with values ranging from 2.37 to 3.67. This ratio indicates that NVIDIA can cover its short-term liabilities without relying on the sale of inventory.
Lastly, the cash ratio, which specifically measures the company's ability to cover its current liabilities with cash and cash equivalents, has ranged from 1.68 to 2.73. This ratio provides insight into NVIDIA's immediate liquidity position and ability to meet short-term obligations without relying on other current assets.
Overall, NVIDIA Corp's liquidity ratios indicate strong financial health and the ability to meet its short-term obligations effectively across the quarters covered in the data.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 116.63 | 132.32 | 154.37 | 169.58 | 176.38 | 152.51 | 110.82 | 41.39 | 94.84 | 83.48 | 29.43 | 39.04 | 92.52 | 89.19 | 96.41 | 90.24 | 81.08 | 94.03 | 122.28 | 131.44 |
The cash conversion cycle of NVIDIA Corp has shown some fluctuations over the past eight quarters. In the most recent quarter, Q4 2024, the company's cash conversion cycle was 116.63 days, indicating an improvement compared to the previous quarter. The trend over the last two years shows that the company has managed to reduce its cash conversion cycle from a high of 176.38 days in Q4 2023 to the current level.
A shorter cash conversion cycle implies that NVIDIA Corp is taking less time to convert its investments in inventory and other resources into cash from sales, which is generally seen as a positive sign. This improvement may indicate more efficient management of working capital and better liquidity management within the company.
It is important for NVIDIA Corp to continue monitoring and managing its cash conversion cycle to ensure efficient operations and sustainable growth. By focusing on optimizing processes related to inventory turnover, accounts receivable, and accounts payable, the company can further improve its cash conversion cycle and strengthen its financial position in the long term.