NVIDIA Corporation (NVDA)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 84,273,000 | 73,164,000 | 64,956,000 | 56,266,000 | 49,509,000 | 42,386,000 | 35,263,000 | 26,953,000 | 17,719,000 | 12,025,000 | 5,657,000 | 4,060,000 | 3,248,000 | 3,769,000 | 4,964,000 | 7,212,000 | 9,598,000 | 10,425,000 | 11,006,000 | 10,534,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 8,459,000 | — | 8,457,000 | — | 8,456,000 | — | — | 9,703,000 | — | 9,701,000 | — | 10,947,000 | — | — | 10,946,000 |
| Total stockholders’ equity | US$ in thousands | 79,327,000 | 65,899,000 | 58,157,000 | 49,142,000 | 42,978,000 | 42,978,000 | 33,265,000 | 33,265,000 | 27,501,000 | 27,501,000 | 24,520,000 | 22,101,000 | 22,101,000 | 21,349,000 | 21,349,000 | 23,851,000 | 26,320,000 | 26,320,000 | 26,612,000 | 26,612,000 |
| Return on total capital | 106.23% | 111.02% | 111.69% | 114.50% | 115.20% | 82.40% | 106.01% | 64.60% | 64.43% | 33.44% | 23.07% | 18.37% | 10.21% | 17.65% | 15.99% | 30.24% | 25.75% | 39.61% | 41.36% | 28.05% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $84,273,000K ÷ ($—K + $79,327,000K)
= 106.23%
NVIDIA Corporation's return on total capital has shown significant fluctuations over the past few years. The ratio stood at 28.05% on January 30, 2022, and then increased to 41.36% by January 31, 2022. The trend continued upward, reaching 64.43% by July 31, 2023, and peaking at 115.20% by January 31, 2024.
However, there was a notable decline in the return on total capital from January 31, 2024, to October 31, 2024, where it remained relatively stable at around 111%. By January 31, 2025, the return on total capital had decreased slightly to 106.23%.
Overall, NVIDIA Corporation has exhibited strong performance in generating returns relative to its total capital in recent years, with occasional fluctuations, showcasing the company's effectiveness in utilizing its capital resources efficiently. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's financial health and performance.
Peer comparison
Jan 31, 2025