NVIDIA Corporation (NVDA)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,589,000 | 9,107,000 | 8,563,000 | 7,587,000 | 7,280,000 | 7,280,000 | 5,519,000 | 5,519,000 | 5,783,000 | 5,783,000 | 5,079,000 | 3,389,000 | 3,389,000 | 2,800,000 | 2,800,000 | 3,013,000 | 3,887,000 | 3,887,000 | 1,990,000 | 1,990,000 |
| Short-term investments | US$ in thousands | 34,621,000 | 29,380,000 | 26,237,000 | 23,851,000 | 18,704,000 | 18,704,000 | 12,762,000 | 12,762,000 | 10,240,000 | 10,240,000 | 10,241,000 | 9,907,000 | 9,907,000 | 10,343,000 | 10,343,000 | 14,024,000 | 16,451,000 | 16,451,000 | 19,218,000 | 19,218,000 |
| Receivables | US$ in thousands | — | — | — | — | — | 9,999,000 | — | 8,309,000 | — | 7,066,000 | — | — | 3,827,000 | — | 4,908,000 | — | — | — | — | 4,650,000 |
| 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 |
| Quick ratio | 2.39 | 2.34 | 2.49 | 2.07 | 2.44 | 3.38 | 2.01 | 2.92 | 1.55 | 2.23 | 2.11 | 2.03 | 2.61 | 1.92 | 2.63 | 2.25 | 3.66 | 3.66 | 4.89 | 5.96 |
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 of NVIDIA Corporation, a key liquidity ratio measuring the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the periods provided.
As of January 31, 2025, the quick ratio stands at 2.39, indicating that NVIDIA has $2.39 in liquid assets available to cover each $1 of its current liabilities. This suggests that the company is well-positioned to meet its short-term debt obligations without relying heavily on inventory, which may not be easily converted to cash.
Analyzing the trend over time, we observe that the quick ratio has ranged from a high of 5.96 on January 30, 2022, to a low of 1.55 on July 31, 2023. The ratio peaked in early 2022 before gradually declining and stabilizing around the 2-3 range in recent periods.
The decreasing trend from 2022 to mid-2023 may indicate a potential decrease in liquid assets relative to current liabilities during that period. However, the subsequent increase from mid-2023 to early 2025 suggests an improvement in the liquidity position of the company.
Overall, the quick ratio of NVIDIA Corporation has displayed variability but has generally remained at levels indicative of a healthy liquidity position. It indicates the company's ability to meet its short-term financial obligations efficiently, which is crucial for sustaining operations and financial stability.
Peer comparison
Jan 31, 2025