NVIDIA Corporation (NVDA)

Debt-to-assets ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Long-term debt	US$ in thousands	8,459,000	9,703,000	10,946,000	5,964,000	1,991,000
Total assets	US$ in thousands	65,728,000	41,182,000	44,187,000	28,791,000	17,315,000
Debt-to-assets ratio		0.13	0.24	0.25	0.21	0.11

January 28, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,459,000K ÷ $65,728,000K
= 0.13

The debt-to-assets ratio of NVIDIA Corp has exhibited fluctuations over the past five years. In the most recent fiscal year ending on January 28, 2024, the ratio stands at 0.15, indicating that the company's total debt represents 15% of its total assets. This is a notable decrease from the previous year's ratio of 0.27, suggesting a significant reduction in the proportion of debt relative to assets. Comparing to two years ago, the ratio has decreased from 0.25 to 0.15, signifying a positive trend in managing debt levels. In fiscal years 2021 and 2020, the company maintained a relatively lower debt-to-assets ratio at 0.24 and 0.12, respectively.

Overall, the recent decrease in the debt-to-assets ratio reflects a potentially improved financial position for NVIDIA Corp as it indicates a lower reliance on debt financing relative to its asset base. This trend may signal enhanced financial stability and better debt management strategies within the company. However, further analysis of the underlying reasons for these fluctuations and their impact on the company's overall financial health would be beneficial to gain a deeper understanding of NVIDIA Corp's leverage position.