Stock Analysis on Net
Stock Analysis on Net

NVIDIA Corp. (NASDAQ:NVDA)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

NVIDIA Corp., adjustment to net income

US$ in millions

Microsoft Excel
12 months ended: Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Net income (as reported) 29,760 4,368 9,752 4,332 2,796 4,141
Add: Available-for-sale debt securities, net change in unrealized gain (loss) 80 (30) (16) — 8 11
Net income (adjusted) 29,840 4,338 9,736 4,332 2,804 4,152

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

NVIDIA Corp., adjusted profitability ratios

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
Net Profit Margin
Reported net profit margin 48.85% 16.19% 36.23% 25.98% 25.61% 35.34%
Adjusted net profit margin 48.98% 16.08% 36.17% 25.98% 25.68% 35.44%
Return on Equity (ROE)
Reported ROE 69.24% 19.76% 36.65% 25.64% 22.91% 44.33%
Adjusted ROE 69.43% 19.63% 36.58% 25.64% 22.98% 44.44%
Return on Assets (ROA)
Reported ROA 45.28% 10.61% 22.07% 15.05% 16.15% 31.15%
Adjusted ROA 45.40% 10.53% 22.03% 15.05% 16.19% 31.24%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. NVIDIA Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. NVIDIA Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. NVIDIA Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

NVIDIA Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Revenue 60,922 26,974 26,914 16,675 10,918 11,716
Profitability Ratio
Net profit margin1 48.85% 16.19% 36.23% 25.98% 25.61% 35.34%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 29,840 4,338 9,736 4,332 2,804 4,152
Revenue 60,922 26,974 26,914 16,675 10,918 11,716
Profitability Ratio
Adjusted net profit margin2 48.98% 16.08% 36.17% 25.98% 25.68% 35.44%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27).

2024 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 29,760 ÷ 60,922 = 48.85%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 29,840 ÷ 60,922 = 48.98%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. NVIDIA Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Shareholders’ equity 42,978 22,101 26,612 16,893 12,204 9,342
Profitability Ratio
ROE1 69.24% 19.76% 36.65% 25.64% 22.91% 44.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 29,840 4,338 9,736 4,332 2,804 4,152
Shareholders’ equity 42,978 22,101 26,612 16,893 12,204 9,342
Profitability Ratio
Adjusted ROE2 69.43% 19.63% 36.58% 25.64% 22.98% 44.44%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27).

2024 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 29,760 ÷ 42,978 = 69.24%

2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 29,840 ÷ 42,978 = 69.43%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. NVIDIA Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Jan 26, 2020 Jan 27, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 29,760 4,368 9,752 4,332 2,796 4,141
Total assets 65,728 41,182 44,187 28,791 17,315 13,292
Profitability Ratio
ROA1 45.28% 10.61% 22.07% 15.05% 16.15% 31.15%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 29,840 4,338 9,736 4,332 2,804 4,152
Total assets 65,728 41,182 44,187 28,791 17,315 13,292
Profitability Ratio
Adjusted ROA2 45.40% 10.53% 22.03% 15.05% 16.19% 31.24%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26), 10-K (reporting date: 2019-01-27).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 29,760 ÷ 65,728 = 45.28%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 29,840 ÷ 65,728 = 45.40%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. NVIDIA Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.