NVIDIA Corporation (NVDA)

Financial leverage ratio

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Total assets	US$ in thousands	111,601,000	65,728,000	65,728,000	41,182,000	41,182,000
Total stockholders’ equity	US$ in thousands	79,327,000	42,978,000	42,978,000	22,101,000	22,101,000
Financial leverage ratio		1.41	1.53	1.53	1.86	1.86

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $111,601,000K ÷ $79,327,000K
= 1.41

The financial leverage ratio of NVIDIA Corporation has gradually declined from 1.86 as of January 29, 2023, to 1.41 as of January 31, 2025. This indicates that the company is relying less on debt financing relative to equity over this period. A decreasing financial leverage ratio can signify a stronger financial position and reduced financial risk, as the company is becoming less dependent on borrowed funds to finance its operations and growth. It suggests that NVIDIA may be managing its capital structure effectively and maintaining a healthy balance between debt and equity in its capital mix.