NVIDIA Corporation (NVDA)
Return on total capital
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 34,075,000 | 4,443,000 | 10,177,000 | 4,593,000 | 3,022,000 |
| Long-term debt | US$ in thousands | 8,459,000 | 9,703,000 | 10,946,000 | 5,964,000 | 1,991,000 |
| Total stockholders’ equity | US$ in thousands | 42,978,000 | 22,101,000 | 26,612,000 | 16,893,000 | 12,204,000 |
| Return on total capital | 66.25% | 13.97% | 27.10% | 20.09% | 21.29% |
January 28, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $34,075,000K ÷ ($8,459,000K + $42,978,000K)
= 66.25%
Analyzing NVIDIA Corp's return on total capital over the past five years reveals a significant increase in performance. The return on total capital has shown a strong upward trend, from 19.97% in January 2020 to an impressive 62.58% in January 2024. This demonstrates the company's ability to generate higher returns relative to the total capital employed in its operations. The noteworthy improvement indicates efficient utilization of resources and effective management of capital investments, which bodes well for the company's profitability and financial health. Investors and stakeholders may view this consistent growth in return on total capital positively, reflecting the company's strong performance and ability to create value for its shareholders.
Peer comparison
Jan 28, 2024