GURUFOCUS.COM » STOCK LIST » USA » NAS » NVIDIA Corp (NAS:NVDA) » Definitions » Financial Strength
Switch to:

NVIDIA Financial Strength

: 8 (As of Apr. 2022)
View and export this data going back to 1999. Start your Free Trial

NVIDIA has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

NVIDIA Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

NVIDIA's Interest Coverage for the quarter that ended in Apr. 2022 was 47.37. NVIDIA's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.35. As of today, NVIDIA's Altman Z-Score is 16.63.


Competitive Comparison

For the Semiconductors subindustry, NVIDIA's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NVIDIA Financial Strength Distribution

For the Semiconductors industry and Technology sector, NVIDIA's Financial Strength distribution charts can be found below:

* The bar in red indicates where NVIDIA's Financial Strength falls into.



NVIDIA Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

NVIDIA's Interest Expense for the months ended in Apr. 2022 was $-68 Mil. Its Operating Income for the months ended in Apr. 2022 was $3,221 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $11,699 Mil.

NVIDIA's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*3221/-68
=47.37

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

NVIDIA's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 11699) / 33152
=0.35

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

NVIDIA has a Z-score of 16.63, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 16.63 is strong.

* 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.


NVIDIA  (NAS:NVDA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

NVIDIA has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


NVIDIA Financial Strength Related Terms

Thank you for viewing the detailed overview of NVIDIA's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


NVIDIA Business Description

NVIDIA logo
Address
2788 San Tomas Expressway, Santa Clara, CA, USA, 95051
Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms. The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.
Executives
Shah Aarti S. director NVIDIA CORPORATION 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Dabiri John director 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Robertson Donald F Jr officer: Principal Accounting Officer C/O NVIDIA CORPORATION 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Neal Stephen C director C/O NVIDIA CORPORATION 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Teter Tim officer: SVP, General Counsel and Sec 572 ELEANOR DRIVE WOODSIDE CA 94062
Drell Persis director 943 LATHROP PLACE STANFORD CA 94305
Mccaffery Michael G director 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Kress Colette officer: Chief Financial Officer & EVP C/O NVIDIA CORPORATION 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Hudson Dawn E director 2530 ZANKER ROAD SAN JOSE CA 95131
Stevens Mark A director 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Miller William J director 34 MAPLE ST MILFORD MA 01757
Jones Harvey C director 300 RIDGEVIEW DRIVE PALM BEACH FL 33480
Burgess Robert K director MACROMEDIA/ 600 TOWNSEND ST SAN FRANCISCO CA 94103
Seawell A Brooke director 2788 SAN TOMAS EXPRESSWAY C/O NVIDIA CORPORATION SANTA CLARA CA 94063
Perry Mark L director 176 WEST BLITHEDALE AVE MILL VALLEY CA 94941

NVIDIA Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)