NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50: 
NVIDIA Corporation and Subsidiaries


Consolidated Statements of Income

(In millions, except per share data)|    |                                                        |              |        |              |        |              |        |        |    |        |
|---:|:-------------------------------------------------------|:-------------|:-------|:-------------|:-------|:-------------|:-------|:-------|:---|:-------|
|  1 |                                                        | Year Ended   |        |              |        |              |        |        |    |        |
|  2 |                                                        | Jan 28, 2024 |        | Jan 29, 2023 |        | Jan 30, 2022 |        |        |    |        |
|  3 | Revenue                                                | $            | 60,922 |              |        | $            | 26,974 |        | $  | 26,914 |
|  4 | Cost of revenue                                        | 16,621       |        |              | 11,618 |              |        | 9,439  |    |        |
|  5 | Gross profit                                           | 44,301       |        |              | 15,356 |              |        | 17,475 |    |        |
|  6 | Operating expenses                                     |              |        |              |        |              |        |        |    |        |
|  7 | Research and development                               | 8,675        |        |              | 7,339  |              |        | 5,268  |    |        |
|  8 | Sales, general and administrative                      | 2,654        |        |              | 2,440  |              |        | 2,166  |    |        |
|  9 | Acquisition termination cost                           | -            |        |              | 1,353  |              |        | -      |    |        |
| 10 | Total operating expenses                               | 11,329       |        |              | 11,132 |              |        | 7,434  |    |        |
| 11 | Operating income                                       | 32,972       |        |              | 4,224  |              |        | 10,041 |    |        |
| 12 | Interest income                                        | 866          |        |              | 267    |              |        | 29     |    |        |
| 13 | Interest expense                                       | (257)        |        |              | (262)  |              |        | (236)  |    |        |
| 14 | Other, net                                             | 237          |        |              | (48)   |              |        | 107    |    |        |
| 15 | Other income (expense), net                            | 846          |        |              | (43)   |              |        | (100)  |    |        |
| 16 | Income before income tax                               | 33,818       |        |              | 4,181  |              |        | 9,941  |    |        |
| 17 | Income tax expense (benefit)                           | 4,058        |        |              | (187)  |              |        | 189    |    |        |
| 18 | Net income                                             | $            | 29,760 |              |        | $            | 4,368  |        | $  | 9,752  |
| 20 | Net income per share:                                  |              |        |              |        |              |        |        |    |        |
| 21 | Basic                                                  | $            | 12.05  |              |        | $            | 1.76   |        | $  | 3.91   |
| 22 | Diluted                                                | $            | 11.93  |              |        | $            | 1.74   |        | $  | 3.85   |
| 24 | Weighted average shares used in per share computation: |              |        |              |        |              |        |        |    |        |
| 25 | Basic                                                  | 2,469        |        |              | 2,487  |              |        | 2,496  |    |        |
| 26 | Diluted                                                | 2,494        |        |              | 2,507  |              |        | 2,535  |    |        |
See accompanying notes to the consolidated financial statements.
50




, NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52: 
NVIDIA Corporation and Subsidiaries


Consolidated Balance Sheets

(In millions, except par value)|    |                                                                                                                                                                                 |              |        |              |        |    |        |
|---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:-------|:-------------|:-------|:---|:-------|
|  1 |                                                                                                                                                                                 | Jan 28, 2024 |        | Jan 29, 2023 |        |    |        |
|  2 | Assets                                                                                                                                                                          |              |        |              |        |    |        |
|  3 | Current assets:                                                                                                                                                                 |              |        |              |        |    |        |
|  4 | Cash and cash equivalents                                                                                                                                                       | $            | 7,280  |              |        | $  | 3,389  |
|  5 | Marketable securities                                                                                                                                                           | 18,704       |        |              | 9,907  |    |        |
|  6 | Accounts receivable, net                                                                                                                                                        | 9,999        |        |              | 3,827  |    |        |
|  7 | Inventories                                                                                                                                                                     | 5,282        |        |              | 5,159  |    |        |
|  8 | Prepaid expenses and other current assets                                                                                                                                       | 3,080        |        |              | 791    |    |        |
|  9 | Total current assets                                                                                                                                                            | 44,345       |        |              | 23,073 |    |        |
| 10 | Property and equipment, net                                                                                                                                                     | 3,914        |        |              | 3,807  |    |        |
| 11 | Operating lease assets                                                                                                                                                          | 1,346        |        |              | 1,038  |    |        |
| 12 | Goodwill                                                                                                                                                                        | 4,430        |        |              | 4,372  |    |        |
| 13 | Intangible assets, net                                                                                                                                                          | 1,112        |        |              | 1,676  |    |        |
| 14 | Deferred income tax assets                                                                                                                                                      | 6,081        |        |              | 3,396  |    |        |
| 15 | Other assets                                                                                                                                                                    | 4,500        |        |              | 3,820  |    |        |
| 16 | Total assets                                                                                                                                                                    | $            | 65,728 |              |        | $  | 41,182 |
| 18 | Liabilities and Shareholders' Equity                                                                                                                                            |              |        |              |        |    |        |
| 19 | Current liabilities:                                                                                                                                                            |              |        |              |        |    |        |
| 20 | Accounts payable                                                                                                                                                                | $            | 2,699  |              |        | $  | 1,193  |
| 21 | Accrued and other current liabilities                                                                                                                                           | 6,682        |        |              | 4,120  |    |        |
| 22 | Short-term debt                                                                                                                                                                 | 1,250        |        |              | 1,250  |    |        |
| 23 | Total current liabilities                                                                                                                                                       | 10,631       |        |              | 6,563  |    |        |
| 24 | Long-term debt                                                                                                                                                                  | 8,459        |        |              | 9,703  |    |        |
| 25 | Long-term operating lease liabilities                                                                                                                                           | 1,119        |        |              | 902    |    |        |
| 26 | Other long-term liabilities                                                                                                                                                     | 2,541        |        |              | 1,913  |    |        |
| 27 | Total liabilities                                                                                                                                                               | 22,750       |        |              | 19,081 |    |        |
| 28 | Commitments and contingencies - see Note 13                                                                                                                                     |              |        |              |        |    |        |
| 30 | Shareholders' equity:                                                                                                                                                           |              |        |              |        |    |        |
| 31 | Preferred stock, $0.001 par value; 2 shares authorized; none issued                                                                                                             | -            |        |              | -      |    |        |
| 32 | Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023 | 2            |        |              | 2      |    |        |
| 33 | Additional paid-in capital                                                                                                                                                      | 13,132       |        |              | 11,971 |    |        |
| 35 | Accumulated other comprehensive income (loss)                                                                                                                                   | 27           |        |              | (43)   |    |        |
| 36 | Retained earnings                                                                                                                                                               | 29,817       |        |              | 10,171 |    |        |
| 37 | Total shareholders' equity                                                                                                                                                      | 42,978       |        |              | 22,101 |    |        |
| 38 | Total liabilities and shareholders' equity                                                                                                                                      | $            | 65,728 |              |        | $  | 41,182 |
See accompanying notes to the consolidated financial statements.
52






Question: How efficiently is NVIDIA utilizing its assets and managing its inventory and receivables in 2024 compared to 2023?
Answer: In 2024, NVIDIA demonstrated improved efficiency in utilizing its assets and managing its inventory and receivables compared to 2023. The key efficiency metrics indicate the following trends:

1. Inventory Turnover Ratio: Increased from 2.23 in 2023 to 3.18 in 2024, showing that NVIDIA is turning over its inventory more frequently, which is a positive sign of inventory management efficiency.

2. Days Sales of Inventory (DSI): Decreased from 164.0 days in 2023 to 114.6 days in 2024, indicating that the company is selling its inventory faster.

3. Receivables Turnover Ratio: Increased from 3.90 in 2023 to 8.81 in 2024, suggesting that NVIDIA is collecting its receivables more efficiently.

4. Days Sales Outstanding (DSO): Increased from 51.8 days in 2023 to 59.9 days in 2024, indicating a slight delay in collecting receivables, which may need attention.

5. Payables Turnover Ratio: Increased from 5.97 in 2023 to 8.54 in 2024, showing that the company is paying its suppliers more quickly.

6. Days Payable Outstanding (DPO): Increased from 37.5 days in 2023 to 59.2 days in 2024, indicating that NVIDIA is taking longer to pay its suppliers, which can be a strategic move to manage cash flow.

7. Asset Turnover Ratio: Increased from 0.50 in 2023 to 1.14 in 2024, reflecting better utilization of total assets to generate sales.

8. Fixed Asset Turnover Ratio: Increased from 6.99 in 2023 to 15.78 in 2024, indicating more efficient use of fixed assets to generate revenue.

9. Net Working Capital Turnover Ratio: Increased from 1.63 in 2023 to 1.81 in 2024, showing improved efficiency in using working capital to generate sales.

Overall, NVIDIA has shown significant improvements in most efficiency metrics, indicating better management of its resources and enhanced operational efficiency in 2024 compared to 2023. However, the increase in DSO suggests that the company may need to focus on improving its receivables collection process.