NVIDIA Corporation (NVDA)
Quick ratio
| 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 | US$ in thousands | 7,280,000 | 5,519,000 | 5,783,000 | 5,079,000 | 3,389,000 | 2,800,000 | 3,013,000 | 3,887,000 | 1,990,000 | 1,288,000 | 5,628,000 | 978,000 | 847,000 | 2,251,000 | 3,274,000 | 15,494,000 | 10,896,000 | 9,765,000 | 7,105,000 | 2,772,000 |
| Short-term investments | US$ in thousands | 18,704,000 | 12,762,000 | 10,240,000 | 10,241,000 | 9,907,000 | 10,343,000 | 14,024,000 | 16,451,000 | 19,218,000 | 18,010,000 | 14,026,000 | 11,689,000 | 10,714,000 | 7,888,000 | 7,707,000 | 860,000 | 1,000 | 4,000 | 1,370,000 | 5,030,000 |
| Receivables | US$ in thousands | 9,999,000 | 8,309,000 | 7,066,000 | 4,080,000 | 3,827,000 | 4,908,000 | 5,317,000 | — | 4,650,000 | 3,954,000 | — | — | 2,429,000 | 2,546,000 | 2,084,000 | 1,907,000 | 1,657,000 | 1,455,000 | 1,561,000 | 1,242,000 |
| Total current liabilities | US$ in thousands | 10,631,000 | 9,101,000 | 10,334,000 | 7,260,000 | 6,563,000 | 6,855,000 | 7,573,000 | 5,562,000 | 4,335,000 | 3,612,000 | 4,448,000 | 4,004,000 | 3,925,000 | 3,669,000 | 2,410,000 | 1,903,000 | 1,784,000 | 1,475,000 | 1,317,000 | 1,183,000 |
| 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 |
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 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.
Looking at NVIDIA Corp's quick ratio over the past 8 quarters, we observe fluctuations in the ratio. In Q4 2024, the quick ratio was at 3.67, showing a significant increase from the previous quarter's ratio of 3.06. This suggests that in Q4 2024, NVIDIA had $3.67 in liquid assets available to cover each $1 of its current liabilities, indicating a strong ability to meet short-term obligations.
Examining the trend further, we note that the quick ratio has been varying between 2.37 and 4.75 over the past 8 quarters. Despite some fluctuations, the quick ratio has generally been at a healthy level, staying above 2 in all quarters, which implies that NVIDIA Corp has consistently maintained a solid liquidity position.
Overall, based on the quick ratio trend, NVIDIA Corp appears to have a strong ability to meet its short-term obligations with its liquid assets, which is a positive indicator for the company's financial health and ability to manage its current liabilities.
Peer comparison
Jan 28, 2024