NVIDIA Corporation (NVDA)
Quick ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,280,000 | 3,389,000 | 1,990,000 | 847,000 | 10,896,000 |
| Short-term investments | US$ in thousands | 18,704,000 | 9,907,000 | 19,218,000 | 10,714,000 | 1,000 |
| Receivables | US$ in thousands | 9,999,000 | 3,827,000 | 4,650,000 | 2,429,000 | 1,657,000 |
| Total current liabilities | US$ in thousands | 10,631,000 | 6,563,000 | 4,335,000 | 3,925,000 | 1,784,000 |
| Quick ratio | 3.38 | 2.61 | 5.96 | 3.56 | 7.04 |
January 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,280,000K
+ $18,704,000K
+ $9,999,000K)
÷ $10,631,000K
= 3.38
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position as it shows the company has an adequate amount of liquid assets to cover its current liabilities.
Analyzing the quick ratio of NVIDIA Corp over the past five years, we can observe fluctuations in the ratio. The quick ratio was 3.67 in January 2024, indicating that for every $1 of current liabilities, the company had $3.67 in quick assets available to cover those obligations. This represents an improvement compared to the previous year where the quick ratio was 2.73.
In January 2023, the quick ratio was 2.73, showing a slight decrease from the previous year. The quick ratio significantly improved in January 2022 to 6.05, signifying a substantial increase in liquidity compared to the previous year. This improvement continued into January 2023 as the quick ratio was 3.63.
Notably, in January 2020, the quick ratio was at its highest value of 7.12, indicating a very strong liquidity position for the company at that time.
Overall, the quick ratio of NVIDIA Corp has shown variability over the past five years, with fluctuations in liquidity levels. It is important for potential investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Jan 28, 2024