NVIDIA Corporation (NVDA)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 84,026,000 72,915,000 64,705,000 56,013,000 49,257,000 42,132,000 35,007,000 26,694,000 17,459,000 11,766,000 5,398,000 3,802,000 2,989,000 3,506,000 4,698,000 6,950,000 9,340,000 10,173,000 10,762,000 10,291,000
Revenue (ttm) US$ in thousands 130,497,000 113,269,000 100,290,000 88,370,000 80,446,000 71,850,000 63,254,000 52,326,000 40,257,000 32,801,000 25,225,000 23,964,000 24,617,000 26,854,000 29,211,000 30,923,000 31,862,000 30,677,000 28,896,000 27,760,000
Pretax margin 64.39% 64.37% 64.52% 63.38% 61.23% 58.64% 55.34% 51.01% 43.37% 35.87% 21.40% 15.87% 12.14% 13.06% 16.08% 22.48% 29.31% 33.16% 37.24% 37.07%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $84,026,000K ÷ $130,497,000K
= 64.39%

The pretax margin of NVIDIA Corporation has shown variations over the period from January 30, 2022, to January 31, 2025. The pretax margin, which reflects the company's efficiency in generating profits before taxes, started at 37.07% in January 2022 and experienced fluctuations over time, reaching its lowest point of 12.14% in January 2023.

However, there was a significant improvement in the pretax margin in the subsequent quarters, with the margin increasing steadily to 64.39% by January 31, 2025. This upward trend indicates a positive development in NVIDIA's profitability before tax expenses during the period under consideration.

Overall, the trend in NVIDIA's pretax margin demonstrates the company's ability to manage costs and generate higher earnings relative to its total revenue. It suggests that NVIDIA has been effective in controlling operating expenses and generating profits before taxes, which can be seen as a favorable indicator of the company's financial performance and operational efficiency.