NVIDIA Corp.

Consolidated Income Statement

US$ in millions
12 months ended: Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
Revenue 10,918 11,716 9,714 6,910
Cost of revenue (4,150) (4,545) (3,892) (2,847)
Gross profit 6,768 7,171 5,822 4,063
Research and development (2,829) (2,376) (1,797) (1,463)
Sales, general and administrative (1,093) (991) (815) (663)
Restructuring and other charges — — — (3)
Operating expenses (3,922) (3,367) (2,612) (2,129)
Income from operations 2,846 3,804 3,210 1,934
Interest income 178 136 69 54
Interest expense (52) (58) (61) (58)
Other, net (2) 14 (22) (25)
Other income (expense) 124 92 (14) (29)
Income before income tax 2,970 3,896 3,196 1,905
Income tax (expense) benefit (174) 245 (149) (239)
Net income 2,796 4,141 3,047 1,666
Jan 31, 2016 Jan 25, 2015
5,010 4,682
(2,199) (2,082)
2,811 2,599
(1,331) (1,360)
(602) (481)
(131) —
(2,064) (1,840)
747 759
39 28
(47) (46)
4 14
(4) (4)
743 755
(129) (124)
614 631
 NVIDIA Corp.
Consolidated Balance Sheet: Liabilities and Stockholders’ Equity
US$ in millions
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
Current liabilities
Accounts payable 687 511 596 485
Customer program accruals 462 302 181 197
Accrued payroll and related expenses 185 186 172 137
Deferred revenue 141 92 53 85
Short-term operating lease liabilities 91 — — —
Taxes payable 61 91 33 4
Licenses payable 54 12 — —
Professional service fees 18 14 15 13
Other 85 121 88 71
Accrued and other current liabilities 1,097 818 542 507
Convertible short-term debt — — 15 796
Total Current liabilities 1,784 1,329 1,153 1,788
Long-Term Liabilities
Long-term debt 1,991 1,988 1,985 1,983
Long-term operating lease liabilities 561 — — —
Convertible long-term debt — — — —
Income tax payable 528 513 559 96
Licenses payable 110 1 — —
Deferred revenue 60 46 15 4
Deferred income tax liability 29 19 18 141
Employee benefits liability 22 20 12 10
Deferred rent — 21 9 6
Other 26 13 19 14
Other long-term liabilities 775 633 632 271
Capital lease obligations, long-term — — — 6
Total Long-term liabilities 3,327 2,621 2,617 2,260
Total liabilities 5,111 3,950 3770 4,048
Shareholders’ Funds
Convertible debt conversion obligation — — — 31

Preferred stock, $.001 par value; none issued — — — —

Common stock, $.001 par value 1 1 1 1
Additional paid-in capital 7,045 6,051 5,351 4,708
Treasury stock, at cost (9,814) (9,263) (6,650) (5,039)
Accumulated other comprehensive income
(loss) 1 (12) (18) (16)
Retained earnings 14,971 12,565 8,787 6,108
 Total Shareholders’ equity 12,204 9,342 7471 5,762
Total Liabilities and Shareholders’ Equity 17,315 13,292 11,241 9,841

Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017
Current Assets
Cash and cash equivalents 10,896 782 4,002 1,766
Marketable securities 1 6,640 3,106 5,032
Accounts receivable, net 1,657 1,424 1,265 826
Inventories 979 1,575 796 794
Prepaid expenses and other current assets 157 136 86 118
Deferred income taxes — — — —
Total Current assets 13,690 10,557 9255 8,536
Non-Current Assets
Property and equipment, net 1,674 1,404 997 521
Operating lease assets 618 — — —
Goodwill 618 618 618 618
Intangible assets, net 49 45 52 104
Deferred income tax assets 548 560 245 7
Other assets 118 108 74 55
Total Non-Current Assets 3,625 2,735 1986 1,305
Total assets 17,315 13,292 11,241 9,841
olders’ Equity

Jan 31, 2016 Jan 25, 2015

296 293
160 147
79 112
322 293
— —
2 3
— —
23 17
56 31
642 603
1,413 —
2,351 896

— —
— —
— 1,384
78 121
— —
44 108
301 232
— —
— —
30 28
453 489
10 14
463 1,887
2,814 2783

87 —

— —
1 1
4,170 3,855
(4,048) (3,395)

(4) 8
4,350 3,949
 4,469 4418
7,370 7,201

Jan 31, 2016 Jan 25, 2015

596 497
4,441 4,127
505 474
418 483
93 70
— 63
6,053 5713

466 557
— —
618 618
166 222
4 3
63 87
1,317 1488
7,370 7,201
 NVIDIA Corp.
Consolidated Cash Flow Statement
US$ in millions
12 months ended: Jan 26, 2020 Jan 27, 2019 Jan 28, 2018
Net income 2,796 4,141 3,047
Stock-based compensation expense 844 557 391
Depreciation and amortization 381 262 199
Deferred income taxes 18 (315) (359)
Loss on early debt conversions — — 19
Restructuring and other charges — — —
Tax benefit from stock-based compensation — — —
Other 5 (45) 20
Accounts receivable (233) (149) (440)
Inventories 597 (776) —
Prepaid expenses and other assets 77 (55) 21
Accounts payable 194 (135) 90
Accrued and other current liabilities 54 256 33
Other long-term liabilities 28 2 481
Changes in operating assets and liabilities 717 (857) 185
Adjustments to reconcile net income to net cash
provided by operating activities 1,965 (398) 455
Net cash provided by operating activities 4,761 3,743 3,502

Proceeds from maturities of marketable securities 4,744 7,232 1,078

Proceeds from sales of marketable securities 3,365 428 863
Purchases of marketable securities (1,461) (11,148) (36)
Purchases of property and equipment and intangible
assets (489) (600) (593)
Investments and other, net (14) (9) (36)
Proceeds from sale of long-lived assets and
investments — — 2
Reimbursement of building development costs from
banks — — —

Net cash (used in) provided by investing activities 6,145 (4,097) 1,278
Proceeds from issuance of debt — — —

Payments related to repurchases of common stock — (1,579) (909)

Repayment of Convertible Notes — (16) (812)
Dividends paid (390) (371) (341)
Proceeds related to employee stock plans 149 137 139
Payments related to tax on restricted stock units (551) (1,032) (612)
Tax benefit from stock-based compensation — — —
Other — (5) (9)

Net cash provided by (used in) financing activities (792) (2,866) (2,544)
Change in cash and cash equivalents 10,114 (3,220) 2,236
Cash and cash equivalents at beginning of period 782 4,002 1,766
Cash and cash equivalents at end of period 10,896 782 4,002
ement

Jan 29, 2017 Jan 31, 2016 Jan 25, 2015

1,666 614 631
247 204 158
187 197 220
197 134 83
21 — —
— 45 —
— (10) (18)
33 42 36
(321) (32) (49)
(375) 66 (95)
(18) (16) 4
184 (11) (27)
(135) 39 5
(14) (97) (41)
(679) (51) (203)

6 561 275
1,672 1,175 906

969 1,036 865

1,546 2,102 1,372
(3,134) (3,477) (2,862)

(176) (86) (122)

(5) (6) (1)

7 7 21

— 24 —

(793) (400) (727)

1,988 — —

(739) (587) (814)

(673) — —
(261) (213) (186)
167 186 153
(176) (66) —
— 10 18
 (15) (6) (5)

291 (676) (834)

1,170 99 (655)
596 497 1,152
1,766 596 497
Ratios
Liquidity Analysis
2020 2019 2018 2017 2016
Current Ratio 7.67 7.94 8.03 4.77 2.57
Acid Test Ratio 7.04 6.66 7.26 4.26 2.36
Super Quick Ratio 6.11 5.58 6.16 3.80 2.14

Qualitative Analysis
2020 2019 2018 2017 2016
Inventory Turnover 3.25 3.83 4.90 4.70 4.88
Holding Period 112.31 95.21 74.56 77.69 74.78
Receivables Turnover 7.09 8.71 9.29 10.38 10.23
Collection Period 51.50 41.89 39.28 35.15 35.66
Paybles Turnover 6.93 8.21 7.20 7.29 7.47
Payment Period 52.68 44.45 50.69 50.06 48.88

Expense Ratio
2020 2019 2018 2017 2016
Operating Expense 0.74 0.68 0.67 0.72 0.85
Raw Material Expense 0.38 0.39 0.40 0.41 0.44
Selling and Administrative Expen 0.10 0.08 0.08 0.10 0.12

Du Point Analysis
2020 2019 2018 2017 2016
Average Shareholders funds 10773 8406.5 6616.5 5115.5 4443.5
ROE=EAT/Shareholders funds 25.95% 49.26% 46.05% 32.57% 13.82%
Net Profit Margin = EAT/Net Sale 25.61% 35.34% 31.37% 24.11% 12.26%
Assest Turnover = Net Sales/Total 0.63 0.88 0.86 0.70 0.68
Equity Multiplier = TA/Equity 1.61 1.58 1.70 1.92 1.66
ROE 25.95% 49.26% 46.05% 32.57% 13.82%

Debt Ratios
2020 2019 2018 2017 2016
Debt to equity 0.16 0.21 0.27 0.34 —
Debt to capital 0.14 0.18 0.21 0.26 —
Debt to assets 0.11 0.15 0.18 0.20 —
Financial leverage 1.42 1.42 1.50 1.71 1.65
Coverage Ratio
2020 2019 2018 2017 2016
Interest coverage 54.73 65.59 52.62 33.34 15.89

Profitability Analysis
2020 2019 2018 2017 2016
Gross Profit % 62% 61% 60% 59% 56%
PBITDA Margin 26% 32% 33% 28% 15%
PBIT Margin 26% 32% 33% 28% 15%
EBITDA Margin 26% 33% 33% 28% 15%
EBIT Margin 26% 33% 33% 28% 15%
EAT Margin/Net Profit Margin 26% 35% 31% 24% 12%

Rate of Returns
2020 2019 2018 2017 2016
Average Total Assets 15,303.5 12,266.5 10,541.0 8,605.5 7,285.5
Total Capital employed 15,531.0 11,963.0 10,088.0 8,053.0 5,019.0
Average capital employed 13,747.0 11,025.5 9,070.5 6,536.0 5,662.0
Equity Shareholders Funds 10,773.0 8,406.5 6,616.5 5,115.5 4,443.5
EAT 2,796.0 4,141.0 3,047.0 1,666.0 614.0
Interest expense 52.0 58.0 61.0 58.0 47.0
Income Tax 174.0 245.0 149.0 239.0 129.0
Interest (1-tax rate) 48.95 54.35 58.16 50.72 38.84
Tax rate=Tax/EBT 5.86% 6.29% 4.66% 12.55% 17.36%
ROTA 0.19 0.34 0.29 0.20 0.09
ROCE 0.18 0.35 0.31 0.21 0.13
ROE 0.26 0.49 0.46 0.33 0.14
 2015
6.38
5.69
5.16

2015
-
-
-
-
-
-

2015
0.84
0.44
0.10

2015
4418
14.28%
13.48%
0.65
1.63
14.28%

2015
—
—
—
1.63
 2015
16.50

2015
56%
16%
16%
17%
17%
13%

2015
7,201.0
6,305.0
6,305.0
4,418.0
631.0
46.0
124.0
38.45
16.42%
0.09
0.11
0.14