NVIDIA (LTS:0R1I) ROCE %

: 113.19% (As of Jan. 2024)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. NVIDIA's annualized ROCE % for the quarter that ended in Jan. 2024 was 113.19%.

NVIDIA ROCE % Historical Data

The historical data trend for NVIDIA's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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NVIDIA Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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21.98

22.74

31.45

11.93

75.96

NVIDIA Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															15.85	25.34	73.76	100.49	113.19

NVIDIA ROCE % Calculation

NVIDIA's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	34075	/	( ( (41182 - 6563)	+	(65728 - 10631) )	/ 2 )
	=	34075	/	( (34619	+	55097)	/ 2 )
	=	34075	/	44858
	=	75.96 %

NVIDIA's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	56676	/	( ( (54148 - 9101)	+	(65728 - 10631) )	/ 2 )
	=	56676	/	( ( 45047	+	55097 )	/ 2 )
	=	56676	/	50072
	=	113.19 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

NVIDIA (LTS:0R1I) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

NVIDIA ROCE % Related Terms

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NVIDIA (LTS:0R1I) Business Description

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https://www.nvidia.com

Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.

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