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NVIDIA (NVIDIA) Interest Coverage

: 216.10 (As of Jan. 2024)
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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 by its Interest Expense. NVIDIA's Operating Income for the three months ended in Jan. 2024 was $13,614 Mil. NVIDIA's Interest Expense for the three months ended in Jan. 2024 was $-63 Mil. NVIDIA's interest coverage for the quarter that ended in Jan. 2024 was 216.10. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. NVIDIA Corp has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for NVIDIA's Interest Coverage or its related term are showing as below:

NVDA' s Interest Coverage Range Over the Past 10 Years
Min: 16.5   Med: 37.98   Max: 128.3
Current: 128.29


NVDA's Interest Coverage is ranked better than
76.13% of 620 companies
in the Semiconductors industry
Industry Median: 19.975 vs NVDA: 128.29

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


NVIDIA Interest Coverage Historical Data

The historical data trend for NVIDIA's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 54.73 [6] => 24.63 [7] => 42.55 [8] => 21.29 [9] => 128.30 )
NVIDIA Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.73 24.63 42.55 21.29 128.30

NVIDIA Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.63 32.42 104.62 165.35 216.10

Competitive Comparison

For the Semiconductors subindustry, NVIDIA's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where NVIDIA's Interest Coverage falls into.



NVIDIA Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


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

NVIDIA's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, NVIDIA's Interest Expense was $-257 Mil. Its Operating Income was $32,972 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,578 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2024 )/Interest Expense (A: Jan. 2024 )
=-1*32972/-257
=128.30

NVIDIA's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, NVIDIA's Interest Expense was $-63 Mil. Its Operating Income was $13,614 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,578 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*13614/-63
=216.10

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


NVIDIA  (NAS:NVDA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


NVIDIA Interest Coverage Related Terms

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


NVIDIA (NVIDIA) Business Description

Address
2788 San Tomas Expressway, Santa Clara, CA, USA, 95051
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.
Executives
Mark A Stevens director 2788 SAN TOMAS EXPRESSWAY, SANTA CLARA CA 95051
Debora Shoquist officer: EVP, Operations C/O NVIDIA CORPORATION, 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
Dawn E Hudson director 2530 ZANKER ROAD, SAN JOSE CA 95131
John Dabiri director 2788 SAN TOMAS EXPRESSWAY, SANTA CLARA CA 95051
Jen Hsun Huang director, officer: President and CEO 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
Melissa Lora director C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Tench Coxe director 755 PAGE MILL ROAD, SUITE A-200, PALO ALTO CA 94304
A Brooke Seawell director 2788 SAN TOMAS EXPRESSWAY, C/O NVIDIA CORPORATION, SANTA CLARA CA 94063
Harvey C Jones director 300 RIDGEVIEW DRIVE, PALM BEACH FL 33480
Persis Drell director 943 LATHROP PLACE, STANFORD CA 94305
Mark L Perry director 176 WEST BLITHEDALE AVE, MILL VALLEY CA 94941
Robert K Burgess director MACROMEDIA/ 600 TOWNSEND ST, SAN FRANCISCO CA 94103
Michael G Mccaffery director 2788 SAN TOMAS EXPRESSWAY, SANTA CLARA CA 95051

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