NVIDIA Corporation (NVDA)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | 0.16 | 0.00 | 0.17 | 0.00 | 0.00 | 0.24 | 0.00 | 0.24 | 0.00 | 0.24 | 0.00 | 0.00 | 0.25 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.00 | 0.20 | 0.00 | 0.24 | 0.00 | 0.00 | 0.31 | 0.00 | 0.31 | 0.00 | 0.29 | 0.00 | 0.00 | 0.29 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.25 | 0.00 | 0.31 | 0.00 | 0.00 | 0.44 | 0.00 | 0.45 | 0.00 | 0.42 | 0.00 | 0.00 | 0.41 |
| Financial leverage ratio | 1.41 | 1.46 | 1.47 | 1.57 | 1.53 | 1.53 | 1.63 | 1.63 | 1.80 | 1.80 | 1.81 | 1.86 | 1.86 | 1.90 | 1.90 | 1.82 | 1.72 | 1.72 | 1.66 | 1.66 |
The solvency ratios of NVIDIA Corporation indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio reflects the proportion of the company's assets financed by debt. NVIDIA's debt-to-assets ratio fluctuated over the analyzed period, ranging from 0% to 24%. The lower the ratio, the lower the financial risk for the company.
2. Debt-to-capital ratio: This ratio shows the proportion of the company's capital structure that is financed by debt. NVIDIA's debt-to-capital ratio ranged from 0% to 31% during the period. A lower ratio indicates a lower reliance on debt for funding operations.
3. Debt-to-equity ratio: This ratio compares the total debt of the company to its shareholders' equity. NVIDIA's debt-to-equity ratio varied between 0% and 45% over the period. A lower ratio signifies lower financial risk as the company has less debt compared to equity.
4. Financial leverage ratio: This ratio measures the company's level of financial leverage or the proportion of debt in its capital structure. NVIDIA's financial leverage ratio decreased from 1.66 to 1.41 during the period. A declining ratio indicates a reduction in the company's reliance on debt financing.
Overall, based on the solvency ratios, it can be observed that NVIDIA Corporation maintained a relatively conservative financial position with low levels of debt compared to its assets, capital, and equity. The decreasing trend in the financial leverage ratio signifies a strengthening financial position and reduced financial risk for the company.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 341.19 | 293.83 | 258.79 | 222.40 | 196.46 | 166.87 | 137.75 | 104.07 | 68.15 | 46.43 | 21.84 | 15.74 | 12.54 | 14.33 | 18.66 | 27.53 | 37.20 | 41.37 | 45.11 | 43.35 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Analyzing the interest coverage ratio of NVIDIA Corporation from January 2022 to January 2025, we observe a generally positive trend in the company's ability to cover its interest payments. The ratio ranged from as high as 341.19 in January 2025 to as low as 12.54 in January 2023.
From January 2022 to October 2024, the interest coverage ratio steadily increased, reflecting NVIDIA's improved ability to meet its interest obligations. However, in the first quarter of 2025, the ratio experienced a significant surge, reaching its peak at 341.19, which could indicate a strong financial position and capability to service debt payments.
Overall, the trend in NVIDIA's interest coverage ratio demonstrates an improving ability to cover interest expenses over the analyzed periods, providing insights into the company's financial health and debt servicing capacity.