NVIDIA Corporation (NVDA)
Return on total capital
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 34,076,000 | 21,259,000 | 11,351,000 | 4,845,000 | 4,443,000 | 6,017,000 | 8,039,000 | 9,953,000 | 10,177,000 | 8,774,000 | 7,475,000 | 5,684,000 | 4,593,000 | 4,098,000 | 3,669,000 | 3,625,000 | 3,021,000 | 2,332,000 | 2,456,000 | 3,031,000 |
| Long-term debt | US$ in thousands | 8,459,000 | 8,457,000 | 8,456,000 | 9,704,000 | 9,703,000 | 9,701,000 | 9,700,000 | 10,947,000 | 10,946,000 | 10,944,000 | 10,943,000 | 5,964,000 | 5,964,000 | 5,963,000 | — | — | 1,991,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 42,978,000 | 33,265,000 | 27,501,000 | 24,520,000 | 22,101,000 | 21,349,000 | 23,851,000 | 26,320,000 | 26,612,000 | 23,798,000 | 21,147,000 | 18,774,000 | 16,893,000 | 15,334,000 | 13,914,000 | 13,099,000 | 12,204,000 | 11,214,000 | 10,336,000 | 9,704,000 |
| Return on total capital | 66.25% | 50.95% | 31.57% | 14.16% | 13.97% | 19.38% | 23.96% | 26.71% | 27.10% | 25.25% | 23.29% | 22.98% | 20.09% | 19.24% | 26.37% | 27.67% | 21.28% | 20.80% | 23.76% | 31.23% |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $34,076,000K ÷ ($8,459,000K + $42,978,000K)
= 66.25%
The return on total capital for NVIDIA Corp has shown a fluctuating trend over the past eight quarters. In Q4 2024, the return on total capital was the highest at 62.58%, indicating that the company generated a significant return relative to its total capital invested. This was a notable improvement compared to the previous quarter, Q3 2024, which had a return on total capital of 47.97%.
However, looking at Q2 2024 and Q1 2024, the return on total capital decreased to 29.02% and 12.67% respectively, suggesting a decline in the company's ability to generate returns on its total capital during those periods.
Comparing the recent performance to the same quarter of the previous year, Q4 2023 had a return on total capital of 16.87%, indicating a significant improvement in Q4 2024. However, Q1 2023 had a higher return on total capital of 30.34%, which was higher than the most recent quarter.
Overall, NVIDIA Corp's return on total capital has experienced fluctuations over the past eight quarters, demonstrating the importance of understanding the company's capital utilization efficiency and profitability performance over time.
Peer comparison
Jan 28, 2024