NVIDIA Corporation (NVDA)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	42,978,000	22,101,000	26,612,000	16,893,000	12,204,000
Debt-to-equity ratio		0.20	0.44	0.41	0.35	0.16

January 28, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,459,000K ÷ $42,978,000K
= 0.20

The debt-to-equity ratio of NVIDIA Corp has shown fluctuations over the past five years. In January 2024, the ratio decreased to 0.23 from 0.50 in January 2023, indicating a significant reduction in the proportion of debt in relation to equity. This could suggest that the company has either reduced its debt levels or increased its equity base.

Comparing the current ratio to previous years, it is lower than the 0.41 recorded in both January 2022 and January 2021, indicating a further decline in debt reliance. The lowest recorded ratio was in January 2020 at 0.17, signifying a lower debt proportion compared to the most recent figure.

The downward trend in the debt-to-equity ratio of NVIDIA Corp over the past five years could imply a strengthening financial position, as the company appears to be relying more on equity financing than debt financing. This may indicate a reduced risk of financial distress and better long-term stability for the company.