NVIDIA Corp. (NASDAQ:NVDA)

The financial liquidity indicators demonstrate notable fluctuations over the examined periods. The Current ratio, which measures the company's ability to cover short-term liabilities with current assets, starts at a high value of 8.98 in April 2019 and generally trends downward with some volatility, reaching lower levels around 3.39 to 4.44 in recent quarters. This suggests a decrease in liquidity but still indicates a strong buffer above the benchmark of 1.0, meaning current assets significantly exceed current liabilities despite the downward trend.

Similarly, the Quick ratio, which excludes inventories from current assets to provide a more stringent test of liquidity, follows a comparable trajectory. It begins at 7.64 and declines over the examined periods, dropping to values near the mid-2 range to low 3s in the most recent quarters. The decrease implies reduced immediate liquidity, but values remain well above 1, indicating a relatively strong position in terms of readily available assets against current liabilities.

The Cash ratio, reflecting the most conservative liquidity measure by considering only cash and cash equivalents relative to current liabilities, also shows a decreasing pattern from 6.60 down to around 2.02 to 2.49 in more recent quarters. Despite this decline, the ratio remains comfortably above 1, suggesting that the company retains a solid cash position relative to its short-term obligations.

Overall, the liquidity ratios consistently remain above 1 throughout the periods, indicating healthy short-term financial stability. However, the downward trends across all three liquidity measures signal a contraction in the buffer of liquid assets over time. This pattern might reflect changes in asset composition or increased liabilities but does not presently indicate liquidity risk, considering the ratios' levels.

Current Ratio

Declined from 8.98 to around 3.39–4.44, indicating reduced but still strong short-term asset coverage.

Quick Ratio

Fell from 7.64 to approximately 2.23–3.67, mirroring the current ratio's decreasing trend but maintaining a robust liquidity position.

Cash Ratio

Dropped from 6.60 to about 1.55–2.49, showing a diminishing yet solid cash reserve relative to short-term liabilities.

Current Assets Trend

Current assets demonstrate a clear upward trajectory over the analyzed periods. Starting at 10,629 million USD in April 2019, the value increased steadily, reaching 25,806 million USD by May 2021. A slight dip is observed around July 2022 at 27,418 million USD, followed by renewed growth that accelerates significantly after October 2023. The most recent figures show a peak of 89,935 million USD in April 2025, indicating substantial asset accumulation and enhanced liquidity reserves.

Current Liabilities Trend

Current liabilities exhibit a rising pattern overall, albeit with more volatility than assets. Beginning at 1,183 million USD in April 2019, liabilities progressively climb to 4,448 million USD by May 2021, with periodic fluctuations thereafter. Notably, liabilities decrease marginally in some quarters, such as October 2021 and April 2023. However, from October 2023 onward, liabilities increase sharply, culminating at 26,542 million USD in April 2025. This trend reflects growing short-term obligations roughly correlating to the expansion in current assets.

Current Ratio Analysis

The current ratio starts at a very high level of 8.98 in April 2019, suggesting strong short-term liquidity. This ratio declines steadily over the next periods, dipping to a low of 2.79 in May 2023, reflecting a relative increase in current liabilities compared to assets. Following this trough, the ratio rebounds to between 3.39 and 4.44 from July 2023 through April 2025, indicating an improvement in liquidity position though still significantly lower than initial levels. The pattern reveals fluctuations in liquidity management, balancing asset growth with rising liabilities.

Overall Insights

The data indicates robust growth in current assets alongside increasing current liabilities, suggesting expansion in operations or investments requiring higher working capital. The initial high liquidity ratio moderates over time, reflecting a normalization or strategic adjustment toward balanced short-term financial obligations. Despite increased liabilities, the current ratio remains above 3 in recent periods, pointing to maintained liquidity adequacy. The marked rise in both assets and liabilities in the last few quarters may require monitoring to assess sustainability and risk.

The quarterly financial data demonstrates notable fluctuations and trends in liquidity and short-term financial strength over the analyzed period.

Total Quick Assets

Total quick assets generally exhibit an upward trajectory, rising from approximately $9.0 billion in April 2019 to over $75.8 billion by April 2025. Initial increases were steady, punctuated by some volatility around mid-2020 and 2022, but the overall trend reflects sustained growth. This significant increase suggests enhanced liquidity and the availability of liquid assets to cover immediate obligations.

Current Liabilities

Current liabilities experienced more fluctuation with an overall increasing trend. Starting near $1.2 billion in April 2019, liabilities grew steadily to approximately $26.5 billion by April 2025. The data reveals periodic surges, notably between mid-2020 and mid-2022, and again from late 2023 onward. Such rises in current liabilities indicate growing short-term obligations, which could be linked to expanded operational activity or financing strategies.

Quick Ratio

The quick ratio, representing the relationship between quick assets and current liabilities, shows a declining trend from a high of around 9.6 in April 2020 to 2.86 by April 2025. Early values were exceptionally high, indicating very strong liquidity positions, but over time the ratio declined sharply, reflecting that current liabilities increased at a faster pace relative to quick assets. Despite the decrease, the quick ratio remains above 2 in most recent periods, suggesting that the company maintains a comfortable short-term liquidity buffer.

Overall, the data underscores a substantial growth in liquid assets paired with an even more pronounced increase in current liabilities, leading to a moderated but still solid quick ratio. The trends suggest the company has expanded its operations or financial commitments, requiring more short-term funding yet maintaining a robust liquidity position to meet those obligations. The decreasing quick ratio over time warrants attention but remains within a range typically considered healthy for liquidity.

Total Cash Assets

The total cash assets exhibit notable growth over the analyzed periods, increasing from $7.8 billion in April 2019 to $53.7 billion by April 2025. There are observable fluctuations within this upward trend: after a steady rise up to April 2020 at approximately $16.4 billion, cash assets declined significantly to roughly $10.1 billion by October 2020. Subsequent quarters saw a recovery and further increases, with the most pronounced surge occurring from October 2023, accelerating from about $18.3 billion to over $53.6 billion by April 2025.

Current Liabilities

Current liabilities increased overall from $1.18 billion in April 2019 to $26.5 billion in April 2025, indicating a rising short-term obligations profile. The liabilities rose steadily with some volatility; notable spikes include a jump from approximately $2.4 billion in July 2020 to $3.7 billion in October 2020, followed by a peak exceeding $10 billion in mid-2023. A sharp increase in current liabilities is also evident from early 2024 onward, culminating in liabilities surpassing $26 billion by April 2025.

Cash Ratio

The cash ratio, representing liquidity by comparing cash assets to current liabilities, shows a declining trend over the full period. Initially very high at 6.6 in April 2019, the ratio decreases substantially to reach a low around 1.55 in mid-2023. While there are intermittent recoveries, the ratio generally remains around 2.0 or lower in the latter quarters. This decline suggests that despite the growth in absolute cash holdings, current liabilities have increased more rapidly, reducing the relative liquidity buffer.

Overall Analysis

The financial data reflect significant expansion in both cash reserves and short-term liabilities, indicating growing operational scale and possibly increased financing or working capital needs. The substantial rise in total cash assets, especially from late 2023 to early 2025, may point to improved cash generation or capital raises. However, the decreasing cash ratio highlights that liability growth outpaced cash accumulation, which may warrant monitoring to ensure sufficient liquidity is maintained for obligations. The fluctuations in cash ratio and cash assets around 2020 suggest a period of financial adjustment, possibly related to external market conditions or strategic shifts. The trends imply an evolving balance between liquidity management and growth financing through the examined timeframe.