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 is the Inventory Turnover Ratio for NVIDIA in 2024, and how does it compare to 2023?
Answer: Inventory Turnover Ratio is calculated using the formula: Inventory Turnover = Cost of Goods Sold / Average Inventory.

For 2024:
Cost of Goods Sold = $16,621 million
Average Inventory = ($5,282 million + $5,159 million) / 2 = $5,220.5 million
Inventory Turnover = $16,621 / $5,220.5 = 3.18

For 2023:
Cost of Goods Sold = $11,618 million
Average Inventory = ($5,159 million + $5,282 million) / 2 = $5,220.5 million
Inventory Turnover = $11,618 / $5,220.5 = 2.23

Analysis:
NVIDIA's Inventory Turnover Ratio increased from 2.23 in 2023 to 3.18 in 2024. This improvement indicates that the company has become more efficient in managing its inventory, selling and replacing it more frequently. The higher ratio suggests better inventory management and operational efficiency, reflecting positively on the company's financial health.