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.