NVIDIA Corporation (NVDA)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.13 | 0.00 | 0.24 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.16 | 0.00 | 0.31 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.20 | 0.00 | 0.44 |
| Financial leverage ratio | 1.41 | 1.53 | 1.53 | 1.86 | 1.86 |
NVIDIA Corporation's solvency ratios indicate a strong financial position in terms of debt management. The Debt-to-assets ratio, which measures the proportion of assets financed by debt, shows a decreasing trend from 0.24 in January 2023 to 0.00 in January 2025, signaling a reduction in the company's reliance on debt to fund its assets.
Similarly, the Debt-to-capital ratio, which assesses the proportion of capital contributed by debt, also shows a declining trend from 0.31 in January 2023 to 0.00 in January 2025, suggesting an improving financial leverage position and a lower dependency on debt for capital structure.
The Debt-to-equity ratio, comparing the company’s debt to its equity, also displays a decreasing pattern from 0.44 in January 2023 to 0.00 in January 2025, indicating a strengthening equity position relative to debt.
Moreover, the Financial leverage ratio, which evaluates the company's ability to meet its financial obligations, has decreased over time from 1.86 in January 2023 to 1.41 in January 2025, reflecting an enhancement in financial stability and creditworthiness.
Overall, the solvency ratios of NVIDIA Corporation demonstrate prudent debt management practices and a solid foundation for financial sustainability and growth in the foreseeable future.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 341.19 | 132.59 | 132.59 | 16.96 | 16.96 |
The interest coverage ratio for NVIDIA Corporation has shown a consistent and strong upward trend over the past few years, indicating the company's ability to comfortably meet its interest obligations.
As of January 29, 2023, and January 31, 2023, the interest coverage ratio stood at 16.96, demonstrating that the company generated earnings nearly 17 times higher than its interest expenses. This reflects a healthy financial position with a substantial cushion to cover interest payments.
Furthermore, as of January 28, 2024, and January 31, 2024, the interest coverage ratio significantly improved to 132.59, indicating a substantial increase in earning power relative to interest expenses. This sharp rise suggests enhanced financial stability and a solid ability to service debt obligations.
By January 31, 2025, the interest coverage ratio surged even further to 341.19, illustrating a remarkable improvement in the company's profitability and ability to meet its interest charges. This high ratio signifies a robust financial position, with ample earnings to cover interest costs multiple times over.
Overall, the consistently high and increasing interest coverage ratios reflect NVIDIA Corporation's sound financial management, strong profitability, and efficient debt servicing capacity, providing investors and creditors with confidence in the company's financial health and stability.