NVIDIA Corporation (NVDA)

Debt-to-equity 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-equity ratio		0.20	0.25	0.31	0.40	0.44	0.45	0.41	0.42	0.41	0.46	0.52	0.32	0.35	0.39	0.00	0.00	0.16	0.00	0.00	0.00

January 28, 2024 calculation

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

NVIDIA Corp's debt-to-equity ratio has shown a declining trend over the past eight quarters, indicating a strengthening financial position in terms of its capital structure. The ratio decreased from 0.50 in Q4 2023 to 0.23 in Q4 2024, reflecting a significant reduction in the company's dependence on debt in relation to equity. This downward trajectory suggests that NVIDIA has been able to manage its debt levels effectively while maintaining a healthy balance between debt and equity financing. It is noteworthy that the ratio has consistently remained below 1, indicating that the company has more equity than debt, which is generally considered a positive sign for investors and creditors. Overall, the declining trend of NVIDIA's debt-to-equity ratio reflects a prudent approach to capital management and a strengthening financial position.