General InstructionsYou have been given an Excel workbook that contains financial information about
NVIDIA Corporation (i.e., NVIDIA). The name of the Excel workbook is NVIDIA
FINANCIALS. This workbook contains five worksheets:
a. SUPPORTING CALCULATIONS: You are to show the supporting calculations for each
of your answers to questions 1 through 23 on this worksheet.
b. IS AND BS: This worksheet contains income statements and balance sheets:
i. Columns A through D and rows one through 18: NVIDIA’s consolidated statements of
income for the fiscal years ending on January 30, 2022, January 31, 2021, and January
26, 2020.
ii. Columns A through C and rows 20 through 52: NVIDIA’s consolidated balance sheets
as of January 30, 2022 and January 31, 2021.
c. MARKETABLE SECURITIES: This worksheet contains information about the
components of NVIDIA’s marketable securities as of January 30, 2022 and January 31,
2021. This information is contained in columns A through C and rows one through 14.
d. OTHER NON-CURRENT ASSETS: This worksheet contains information about the
components of NVIDIA’s other non-current assets as of January 30, 2022 and January
31, 2021. This information is contained in columns A through C and rows one through
13.
e. ACCRUED AND OTHER CURRENT LIAB: This worksheet contains information about
the components of NVIDIA’s accrued and other current liabilities as of January 30, 2022
and January 31, 2021. This information is contained in columns A through C and rows
one through 13.
f. OTHER LONG-TERM LIAB: This worksheet contains information about the
components of NVIDIA’s other long-term liabilities as of January 30, 2022 and January
31, 2021. This information is contained in columns A through C and rows one through
13.
Practice Scenario
NVIDIA Corporation is an American multinational technology company incorporated in
Delaware and based in Santa Clara, California. It is a software and hardware company
that designs and installs graphics processing units (GPUs), application programming
interface (APIs) for data science and high-performance computing, and system on a chip
units (SoCs) for the mobile computing and automotive market. Nvidia is a global leader in
artificial intelligence hardware and software. Its GPUs are used for applications in such
fields as architecture, engineering and construction, gaming, media and entertainment,
automotive, scientific research, manufacturing design, etc.
Assumptions
When answering questions 1 through 23, you are to assume:
•
•
•
•
•
•
NVIDIA’s operating cash equals its cash and cash equivalents.
The following financial statement line items relate to operating activities:
o Deferred income tax assets (balance sheet).
o Deferred income tax liabilities (balance sheet).
Regarding all other financial statement line items, it is your responsibility
to determine whether a particular line item relates either to operating
activities or to financing activities.
Inventory shown on NVIDIA’s balance sheet relates to physical
inventory—i.e., hardware that NVIDIA sells to its customers. The cost of
revenue equals the cost of physical inventory that was sold during the
year.
The tax rate equals 21 percent.
NVIDIA provides the following footnote disclosures about its equity
method investments and its equity method income:
We own equity securities issued by several software developers. We purchased these
securities to develop strategic alliances with these developers and we have significant
influence over the developers’ operating decisions. We account for these investments
using the equity method and we include the carrying value of these investments in the
balance sheet line item “Other non-current assets.” The income generated by these
investments is shown on our income statement in the line item “Equity method income.”
Question 1
What were NVIDIA’s operating assets on January 30, 2022? Your answer should be in
millions of U.S. dollars.
Question 2
What were NVIDIA’s operating liabilities on January 30, 2022? Your answer should be in
millions of U.S. dollars.
Question 3
What were NVIDIA’s invested capital on January 30, 2022? Your answer should be in
millions of U.S. dollars.
Question 4
What were NVIDIA’s financial assets on January 30, 2022? Your answer should be in
millions of U.S. dollars.
Question 5
What were NVIDIA’s financial obligations on January 30, 2022? Your answer should be
in millions of U.S. dollars.
Question 6
What were NVIDIA’s net financial obligations on January 30, 2022? Your answer should
be in millions of U.S. dollars.
Question 7
What was NVIDIA’s net financial expense before tax for the fiscal year ending on
January 30, 2022? Your answer should be in millions of U.S. dollars.
Question 8
What was NVIDIA’s tax savings (cost) from financing activities for the fiscal year ending
on January 30, 2022? If NVIDIA’s financing activities generated tax savings (cost), enter
your answer as a positive (negative) amount. Your answer should be in millions of U.S.
dollars.
Question 9
What was NVIDIA’s net financial expense after tax for the fiscal year ending on January
30, 2022? Your answer should be in millions of U.S. dollars.
Question 10
What was NVIDIA’s taxes on operating activities for the fiscal year ending on January
30, 2022? Your answer should be in millions of U.S. dollars.
Question 11
What was NVIDIA’s net operating profit after tax for the fiscal year ending on January
30, 2022? Your answer should be in millions of U.S. dollars.
Question 12
During the fiscal year ending on January 30, 2022, what was the average number of days
between the day NVIDIA purchased physical inventory and the day it sold that
inventory?
Question 13
During the fiscal year ending on January 30, 2022, what amount of physical inventory
did NVIDIA purchase from its suppliers? Your answer should be in millions of U.S.
dollars.
Question 14
During the fiscal year ending on January 30, 2022, what was the average number of days
between the day NVIDIA purchased physical inventory and the day it paid the supplier
of the physical inventory?
Question 15
For the fiscal year ending on January 30, 2022, what was NVIDIA’s cash conversion
cycle?
Question 16
For the fiscal year ending on January 30, 2022, what was NVIDIA’s operating asset
turnover?
Question 17
For the fiscal year ending on January 30, 2022, what was NVIDIA’s fixed asset turnover?
Question 18
For the fiscal year ending on January 30, 2022, what was NVIDIA’s invested capital
turnover?
Question 19
For the fiscal year ending on January 30, 2022, what was NVIDIA’s gross profit
percentage? State your answer as a percentage.
Question 202 pts
For the fiscal year ending on January 30, 2022, what was NVIDIA’s NOPAT margin?
State your answer as a percentage.
Question 212 pts
For the fiscal year ending on January 30, 2022, what was NVIDIA’s return on invested
capital? State your answer as a percentage.
Question 222 pts
For the fiscal year ending on January 30, 2022, what was the two-year compound
annual growth rate in NVIDIA’s total revenue? State your answer as a percentage.
Question 23
What was the ratio of NVIDIA’s financial obligations to total assets on January 30, 2022?
State your answer as a percentage.
NVIDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions of U.S. Dollars)
Revenue
Cost of revenue
Gross profit
Research and development
Sales, general, and administrative
Income from operations
Interest income
Interest expense
Equity method income
Income before income tax
Income tax expense
Net income
NVIDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions of U.S. Dollars)
Cash and cash equivalents
Marketable securities
Accounts receivable, net
Inventories
Prepaid operating expenses
Total current assets
Property and equipment, net
Operating lease assets
Goodwill
Intangible assets, net
Deferred income tax assets
Other non-current assets
Total assets
Accounts payable
Accrued and other current liabilities
Short-term debt
Total current liabilities
Long-term debt
Long-term operating lease liabilities
Other long-term liabilities
Total liabilities
Common stock
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity
PORATION AND SUBSIDIARIES
ED STATEMENTS OF INCOME
millions of U.S. Dollars)
January 30,
2022
26,914
9,439
17,475
5,268
2,166
10,041
29
-236
107
9,941
189
9,752
AND SUBSIDIARIES
LANCE SHEETS
.S. Dollars)
January 30,
2022
Year Ended
January 31,
2021
16,675
6,279
10,396
3,924
1,940
4,532
57
-184
4
4,409
77
4,332
January 31,
2021
1,990
19,218
4,650
2,605
366
28,829
2,778
829
4,349
2,339
1,222
3,841
44,187
847
10,714
2,429
1,826
239
16,055
2,149
707
4,193
2,737
806
2,144
28,791
1,783
2,552
0
4,335
1,149
1,777
999
3,925
January 26,
2020
10,918
4,150
6,768
2,829
1,093
2,846
178
-52
-2
2,970
174
2,796
10,946
741
1,553
17,575
5,964
634
1,375
11,898
10,377
16,235
26,612
-2,015
18,908
16,893
44,187
28,791
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In millions of U.S. Dollars)
The following is a summary of marketable securities as of January 30, 2022 and January 31, 2021:
Corporate debt securities
Debt securities issued by the United States Treasury
Debt securities issued by United States government agencies
Certificates of deposit
Foreign government bonds
Total
AND SUBSIDIARIES
FINANCIAL STATEMENTS
S. Dollars)
, 2022 and January 31, 2021:
January 30,
2022
8,872
7,300
1,356
1,540
150
19,218
January 31,
2021
4,210
2,821
2,948
668
67
10,714
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In millions of U.S. Dollars)
The following is a summary of other non-current assets as of January 30, 2022 and January 31, 2021:
Prepayments to suppliers
Prepaid royalties
Equity method investments
Other operating assets
Total
AND SUBSIDIARIES
D FINANCIAL STATEMENTS
.S. Dollars)
30, 2022 and January 31, 2021:
January 30,
2022
January 31,
2021
3,104
409
266
62
3,841
1,357
440
144
203
2,144
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In millions of U.S. Dollars)
The following is a summary of accrued and other current liabilties as of January 30, 2022 and January 31, 2021:
Rebates owed to customers
Accrued payroll and related expenses
Unearned revenue
Other operating liabilities
Total
AND SUBSIDIARIES
D FINANCIAL STATEMENTS
.S. Dollars)
of January 30, 2022 and January 31, 2021:
January 30,
2022
January 31,
2021
1,196
409
300
647
2,552
682
297
288
510
1,777
NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In millions of U.S. Dollars)
The following is a summary of other long-term liabilties as of January 30, 2022 and January 31, 2021:
Income tax payable
Deferred income tax liabilities
Unearned revenue
Other operating liabilities
Total
AND SUBSIDIARIES
D FINANCIAL STATEMENTS
.S. Dollars)
y 30, 2022 and January 31, 2021:
January 30,
2022
January 31,
2021
980
245
202
126
1,553
836
241
163
135
1,375
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