NVIDIA Corporation (NVDA)
Operating return on assets (Operating ROA)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 32,972,000 | 4,224,000 | 10,041,000 | 4,532,000 | 2,846,000 |
| Total assets | US$ in thousands | 65,728,000 | 41,182,000 | 44,187,000 | 28,791,000 | 17,315,000 |
| Operating ROA | 50.16% | 10.26% | 22.72% | 15.74% | 16.44% |
January 28, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $32,972,000K ÷ $65,728,000K
= 50.16%
Operating ROA is a key profitability ratio that indicates how efficiently a company generates earnings from its operating assets. NVIDIA Corp's operating return on assets has shown significant fluctuations over the past five years, ranging from 13.54% in Jan 29, 2023, to 50.16% in Jan 28, 2024. The increase in operating ROA to 50.16% in 2024 signifies that the company was able to generate a higher level of operating income relative to its assets compared to the previous years. This substantial improvement suggests stronger operational efficiency and better asset utilization by NVIDIA Corp in 2024. However, it is essential to further investigate the factors contributing to this notable increase to determine the sustainability and root causes of the improved performance.
Peer comparison
Jan 28, 2024