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






Question: What is the Debt Service Coverage Ratio for NVIDIA in 2024, and how does it compare to 2023?
Answer: Debt Service Coverage Ratio is calculated using the formula: Debt Service Coverage Ratio = Net Operating Income / Debt Service.

For 2024:
Net Operating Income (Operating Income) = $32,972 million
Debt Service (Interest Expenses) = $257 million
Debt Service Coverage Ratio = $32,972 / $257 = 128.3

For 2023:
Net Operating Income (Operating Income) = $4,224 million
Debt Service (Interest Expenses) = $262 million
Debt Service Coverage Ratio = $4,224 / $262 = 16.1

Analysis:
NVIDIA's Debt Service Coverage Ratio increased significantly from 16.1 in 2023 to 128.3 in 2024. This substantial improvement indicates that the company has become much more capable of covering its debt service obligations with its operating income. The higher ratio reflects improved profitability and financial health, suggesting that NVIDIA is in a strong position to meet its debt service obligations.