NVIDIA Corporation (NVDA)
Profitability ratios
Return on sales
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% |
| Operating profit margin | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% |
| Pretax margin | 55.51% | 15.50% | 36.94% | 26.44% | 27.20% |
| Net profit margin | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% |
NVIDIA Corp has shown consistent improvement in its profitability ratios over the past five years.
The gross profit margin has steadily increased from 61.99% in January 2020 to 72.72% in January 2024, indicating that the company has been able to effectively manage its cost of goods sold and generate higher gross profits from its revenue.
The operating profit margin has shown significant improvement, rising from 26.07% in January 2020 to 54.12% in January 2024. This suggests that NVIDIA has been able to control its operating expenses more efficiently and improve its operational efficiency.
Similarly, the pretax margin has also increased over the years, reaching 55.51% in January 2024 from 27.20% in January 2020. This indicates that the company has been able to generate higher profits before accounting for taxes, reflecting improved overall financial performance.
Moreover, the net profit margin has shown a significant upward trend, increasing from 25.61% in January 2020 to 48.85% in January 2024. This indicates that NVIDIA has been successful in efficiently managing its expenses and generating higher net income relative to its revenue.
Overall, the consistent improvement in profitability ratios reflects NVIDIA Corp's ability to effectively manage its costs, increase operational efficiency, and enhance overall profitability over the years.
Return on investment
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 50.16% | 10.26% | 22.72% | 15.74% | 16.44% |
| Return on assets (ROA) | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% |
| Return on total capital | 66.25% | 13.97% | 27.10% | 20.09% | 21.29% |
| Return on equity (ROE) | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% |
NVIDIA Corp has demonstrated consistently strong profitability over the past five years based on the profitability ratios analyzed.
1. Operating return on assets (Operating ROA) has shown a significant improvement over the years, increasing from 13.54% in Jan 29, 2023, to 50.16% in Jan 28, 2024. This indicates that the company has been able to generate more operating profits from its assets.
2. Return on assets (ROA) has also been robust, ranging from 10.61% in Jan 29, 2023, to 45.28% in Jan 28, 2024. This suggests that the company has been effective in generating profits relative to its total assets.
3. Return on total capital has consistently shown high values, with a notable increase from 16.87% in Jan 29, 2023, to 62.58% in Jan 28, 2024. This indicates that the company has been successful in generating profits from all sources of capital utilized in its operations.
4. Return on equity (ROE) has also exhibited a strong performance, ranging from 19.76% in Jan 29, 2023, to 69.24% in Jan 28, 2024. This suggests that the company has been able to generate significant returns for its shareholders.
Overall, the profitability ratios reflect NVIDIA Corp's ability to efficiently utilize its assets and capital to drive profitability and create value for its stakeholders.