Is the business good?
How good a business is NVDA?
NVIDIA Corporation earns 65% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
65%
Return on invested capital · cost of capital 9.0% · 56 points above what the capital costs: growth creates value
- Operating margin
- 65%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2027
- Cash conversion
- 0.66×
Cash conversion · 0.83× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 27% |
| FY2022 | 37% |
| FY2023 | 16% |
| FY2024 | 54% |
| FY2025 | 62% |
| FY2026 | 60% |
Details›
- Gross margin12 months to Q2 2027
- 75%
- Operating margin12 months to Q2 2027
- 65%
- Net margin12 months to Q2 2027
- 64%
- Free cash flow margin
- 42%
- R&D as % of revenue
- 7.8%
- Revenue, trailing twelve months
- $303.0B
- Free cash flow, trailing twelve months
- $127.0B
- Net income, trailing twelve months
- $192.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 65%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.