NVIDIA Corporation (NVDA)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 84,273,000 | 34,075,000 | 34,075,000 | 4,443,000 | 4,443,000 |
| Long-term debt | US$ in thousands | — | — | 8,459,000 | — | 9,703,000 |
| Total stockholders’ equity | US$ in thousands | 79,327,000 | 42,978,000 | 42,978,000 | 22,101,000 | 22,101,000 |
| Return on total capital | 106.23% | 79.28% | 66.25% | 20.10% | 13.97% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $84,273,000K ÷ ($—K + $79,327,000K)
= 106.23%
Based on the provided data, the return on total capital for NVIDIA Corporation has shown a significant upward trend over the last few years. In January 2023, the return on total capital was 13.97%, which increased to 20.10% by January 2024. Subsequently, the return on total capital surged to 66.25% in January 2024, further escalating to 79.28% by January 2024. The latest reported return on total capital in January 2025 stood at an impressive 106.23%.
This steady growth in return on total capital indicates that NVIDIA has been effectively utilizing its total capital resources to generate profits and create value for its shareholders. The substantial increase in this ratio over the years reflects the company's efficient capital allocation strategies and successful management of its assets to enhance profitability. Overall, this positive trend in return on total capital suggests that NVIDIA Corporation has been performing well in terms of generating returns from its invested capital.
Peer comparison
Jan 31, 2025