NVIDIA Corporation (NVDA)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.99% | 72.72% | 72.72% | 56.93% | 56.93% |
| Operating profit margin | 62.42% | 54.12% | 54.12% | 15.66% | 15.66% |
| Pretax margin | 64.39% | 55.51% | 55.51% | 15.50% | 15.50% |
| Net profit margin | 55.85% | 48.85% | 48.85% | 16.19% | 16.19% |
Based on the provided data, here is a detailed analysis of NVIDIA Corporation's profitability ratios:
1. Gross Profit Margin:
- The trend in NVIDIA's gross profit margin has been increasing steadily over the years, reaching 74.99% by January 31, 2025.
- The company has effectively managed its cost of goods sold, resulting in a higher percentage of revenue retained as gross profit.
2. Operating Profit Margin:
- NVIDIA's operating profit margin has experienced significant growth, jumping from 15.66% in January 31, 2023, to 62.42% by January 31, 2025.
- This indicates that the company has been able to control its operating expenses relative to its revenue and has improved operational efficiency over time.
3. Pretax Margin:
- The pretax margin for NVIDIA has also shown a remarkable upward trend, increasing from 15.50% in January 29, 2023, to 64.39% by January 31, 2025.
- This implies that the company has been successful in managing not only its cost of goods sold and operating expenses but also its interest expenses and non-operating costs.
4. Net Profit Margin:
- NVIDIA's net profit margin has seen a substantial improvement, rising from 16.19% in January 31, 2023, to 55.85% by January 31, 2025.
- This indicates that the company has been able to generate higher profits from its revenue, after accounting for all expenses, including taxes.
Overall, the data suggests that NVIDIA Corporation has been successfully enhancing its profitability over the years by managing its costs efficiently, improving operational effectiveness, and maximizing net income relative to its revenue.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 72.99% | 50.16% | 50.16% | 10.26% | 10.26% |
| Return on assets (ROA) | 65.30% | 45.28% | 45.28% | 10.61% | 10.61% |
| Return on total capital | 106.23% | 79.28% | 66.25% | 20.10% | 13.97% |
| Return on equity (ROE) | 91.87% | 69.24% | 69.24% | 19.76% | 19.76% |
The profitability ratios of NVIDIA Corporation show a positive trend over the years, indicating a strong financial performance.
1. Operating return on assets (Operating ROA) remained stable at 10.26% in 2023 and then significantly increased to 50.16% in 2024, further rising to 72.99% in 2025. This indicates that the company is efficiently generating profit from its operations relative to its assets.
2. Return on assets (ROA) followed a similar pattern, starting at 10.61% in 2023 and increasing to 45.28% in 2024, before reaching 65.30% in 2025. This ratio reflects the company's ability to generate earnings from its total assets.
3. Return on total capital demonstrates a strong performance, starting at 13.97% in 2023 and steadily increasing to 106.23% in 2025. This indicates that the company is effectively utilizing all its capital resources to generate higher returns.
4. Return on equity (ROE) displays consistent growth, starting at 19.76% in 2023 and reaching 91.87% in 2025. This indicates that the company is providing strong returns to its shareholders relative to their equity investments.
Overall, the profitability ratios of NVIDIA Corporation suggest that the company is efficiently utilizing its assets and capital to generate profits and create value for its shareholders.