NVIDIA Corporation (NVDA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.16 | 0.17 | 0.22 | 0.24 | 0.24 | 0.22 | 0.24 | 0.25 | 0.27 | 0.28 | 0.19 | 0.21 | 0.22 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 |
| 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 |
| 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 |
| Financial leverage ratio | 1.53 | 1.63 | 1.80 | 1.81 | 1.86 | 1.90 | 1.82 | 1.72 | 1.66 | 1.71 | 1.83 | 1.64 | 1.70 | 1.75 | 1.81 | 1.78 | 1.42 | 1.41 | 1.43 | 1.44 |
NVIDIA Corp's solvency ratios provide valuable insights into the company's ability to meet its financial obligations and manage its debt levels effectively. Looking at the trend over the past eight quarters, we observe the following:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. NVIDIA Corp's debt-to-assets ratio has shown a declining trend from 0.27 in Q4 2023 to 0.15 in Q4 2024. This indicates that the company has been successful in reducing its reliance on debt to fund its assets.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital that is financed through debt. NVIDIA Corp's debt-to-capital ratio has also decreased over the quarters, from 0.33 in Q4 2023 to 0.18 in Q4 2024. This suggests that the company has been managing its capital structure efficiently by reducing its debt levels.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its shareholders' equity. NVIDIA Corp's debt-to-equity ratio has demonstrated a downward trend, decreasing from 0.50 in Q4 2023 to 0.23 in Q4 2024. This indicates that the company has been reducing its financial leverage and becoming less reliant on debt financing.
4. Financial leverage ratio: The financial leverage ratio measures a company's total assets relative to its equity. NVIDIA Corp's financial leverage ratio has shown fluctuations over the quarters, with a slight decrease from 1.86 in Q4 2023 to 1.53 in Q4 2024. This suggests that the company's equity position has improved in relation to its total assets.
Overall, based on the analysis of NVIDIA Corp's solvency ratios, it appears that the company has been effectively managing its debt levels and improving its financial position over the quarters. The decreasing trend in debt ratios indicates a positive shift towards a more sustainable capital structure and improved solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 132.59 | 82.40 | 43.66 | 18.63 | 16.96 | 23.23 | 31.40 | 39.65 | 43.12 | 38.48 | 34.13 | 26.69 | 24.83 | 28.26 | 34.94 | 56.64 | 58.10 | 44.00 | 44.65 | 54.12 |
The interest coverage ratio for NVIDIA Corp provides insight into the company's ability to meet its interest obligations with its operating income. The increasing trend in interest coverage ratios from Q1 2023 to Q3 2023 indicates an improvement in the company's ability to cover its interest expenses. The significant jump in interest coverage from Q2 2023 to Q3 2023 suggests a notable increase in operating income relative to interest payments during that period. However, the absence of data for Q1 2024 to Q4 2024 limits our ability to assess the recent trend in interest coverage. It would be advisable to monitor future financial reports to evaluate the sustainability of NVIDIA's ability to cover its interest expenses.