NVIDIA Corporation (NVDA)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.16 | 0.20 | 0.24 | 0.28 | 0.31 | 0.31 | 0.29 | 0.29 | 0.29 | 0.32 | 0.34 | 0.24 | 0.26 | 0.28 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 |
January 28, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,459,000K ÷ ($8,459,000K + $42,978,000K)
= 0.16
The debt-to-capital ratio of NVIDIA Corp has shown a fluctuating trend over the past eight quarters, ranging from 0.18 to 0.34. The ratio represents the proportion of the company's total debt to its total capital, including debt and equity. A lower ratio indicates a lower level of debt relative to capital, which suggests a stronger financial position and lower financial risk. In contrast, a higher ratio indicates a higher level of debt relative to capital, which could potentially increase financial risk.
Analyzing the data provided, we observe that the debt-to-capital ratio has generally decreased from Q4 2023 to Q1 2024, signaling a reduction in the company's debt relative to its total capital during this period. However, from Q1 2024 to Q4 2024, the ratio increased from 0.31 to 0.18, which suggests an uptick in the level of debt compared to the company's total capital.
Overall, it is important for investors and analysts to closely monitor changes in the debt-to-capital ratio to assess the company's leverage and financial health. The fluctuations in this ratio indicate changes in NVIDIA Corp's leverage strategy and ability to manage its debt levels effectively.
Peer comparison
Jan 28, 2024