NVIDIA Corporation (NVDA)

Quick ratio

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Cash	US$ in thousands	8,589,000	7,280,000	7,280,000	3,389,000	3,389,000
Short-term investments	US$ in thousands	34,621,000	18,704,000	18,704,000	9,907,000	9,907,000
Receivables	US$ in thousands	—	—	9,999,000	—	3,827,000
Total current liabilities	US$ in thousands	18,047,000	10,631,000	10,631,000	6,563,000	6,563,000
Quick ratio		2.39	2.44	3.38	2.03	2.61

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,589,000K + $34,621,000K + $—K) ÷ $18,047,000K
= 2.39

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. NVIDIA Corporation's quick ratio has shown some fluctuations over the years based on the provided data.

As of January 29, 2023, the quick ratio was 2.61, indicating that the company had $2.61 of liquid assets available to cover each dollar of current liabilities. This suggests a strong liquidity position.

However, by January 31, 2023, the quick ratio decreased to 2.03, which may indicate a slight decrease in the company's ability to meet its short-term obligations with its liquid assets.

Subsequently, the quick ratio improved significantly to 3.38 as of January 28, 2024, showing a considerable increase in liquidity compared to the previous period. This may indicate an improvement in the company's ability to cover its short-term liabilities with its liquid assets.

By January 31, 2024, the quick ratio decreased to 2.44, but still remained at a relatively healthy level, suggesting that the company has a good ability to meet its short-term obligations.

As of January 31, 2025, the quick ratio stood at 2.39, indicating that the company continues to maintain a strong liquidity position overall.

In conclusion, despite some fluctuations, NVIDIA Corporation has generally maintained a healthy quick ratio over the years, which signifies a strong ability to meet its short-term obligations with its liquid assets.