NVIDIA Corporation (NVDA)
Return on equity (ROE)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,880,000 | 29,760,000 | 29,760,000 | 4,368,000 | 4,368,000 |
| Total stockholders’ equity | US$ in thousands | 79,327,000 | 42,978,000 | 42,978,000 | 22,101,000 | 22,101,000 |
| ROE | 91.87% | 69.24% | 69.24% | 19.76% | 19.76% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $72,880,000K ÷ $79,327,000K
= 91.87%
NVIDIA Corporation's Return on Equity (ROE) has shown a consistent upward trend over the past few years, indicating improved efficiency in generating profits from shareholders' equity. The ROE increased significantly from 19.76% as of January 29, 2023, to 91.87% as of January 31, 2025. This indicates that the company has been effectively utilizing the shareholders' equity to generate higher returns.
The substantial increase in ROE suggests that NVIDIA is effectively leveraging its equity capital to generate profits for its shareholders. A higher ROE signifies that the company is efficient in using its equity to generate earnings, which is a positive indicator of financial performance.
Overall, the upward trend in NVIDIA's ROE reflects positively on the company's ability to generate returns for its equity investors, demonstrating sound financial management and operational efficiency.
Peer comparison
Jan 31, 2025