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: What are the key findings from the solvency analysis of NVIDIA for 2024 and 2023?
Answer: The key findings from the solvency analysis of NVIDIA for 2024 and 2023 are as follows:

1. Total Liabilities: NVIDIA's total liabilities increased from $19,081 million in 2023 to $22,750 million in 2024, indicating a rise in the company's obligations.

2. Long-term Debt: Long-term debt decreased from $9,703 million in 2023 to $8,459 million in 2024, reflecting the company's efforts to reduce its long-term financial obligations.

3. Debt-to-Equity Ratio: The debt-to-equity ratio is calculated using the formula:
Debt-to-Equity Ratio = Total Liabilities / Total Shareholders' Equity
For 2024:
Debt-to-Equity Ratio (2024) = $22,750 million / $42,978 million = 0.53
For 2023:
Debt-to-Equity Ratio (2023) = $19,081 million / $22,101 million = 0.86
The debt-to-equity ratio decreased from 0.86 in 2023 to 0.53 in 2024, indicating an improvement in the company's solvency position and a lower reliance on debt financing.

4. Interest Coverage Ratio: The interest coverage ratio is calculated using the formula:
Interest Coverage Ratio = Operating Income / Interest Expense
For 2024:
Interest Coverage Ratio (2024) = $32,972 million / $257 million = 128.3
For 2023:
Interest Coverage Ratio (2023) = $4,224 million / $262 million = 16.1
The interest coverage ratio increased significantly from 16.1 in 2023 to 128.3 in 2024, indicating that NVIDIA is in a much stronger position to cover its interest expenses with its operating income.

5. Equity Growth: Total shareholders' equity increased from $22,101 million in 2023 to $42,978 million in 2024, reflecting a substantial growth in the company's equity base.

Overall, NVIDIA's solvency position improved significantly in 2024 compared to 2023. The reduction in long-term debt, lower debt-to-equity ratio, and higher interest coverage ratio indicate a stronger financial position and lower financial risk. The substantial growth in shareholders' equity further enhances the company's solvency and financial stability.