Reference no: EM133727408

Assignment: Nvidia Consolidated Statements of Income Exercise

General Instructions

You 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:

1. SUPPORTING CALCULATIONS: You are to show the supporting calculations for each of your answers to questions 1 through 23 on this worksheet.

2. IS AND BS: This worksheet contains income statements and balance sheets:

3. 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.

4. Columns A through C and rows 20 through 52: NVIDIA's consolidated balance sheets as of January 30, 2022 and January 31, 2021.

5. 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.

6. 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.

7. 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.

8. 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:

1) NVIDIA's operating cash equals its cash and cash equivalents.

2) The following financial statement line items relate to operating activities:

a) Deferred income tax assets (balance sheet).
b) Deferred income tax liabilities (balance sheet).

3) 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.

4) 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.

5) The tax rate equals 21 percent.

6) 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 I

What were NVIDIA's operating assets on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question II

What were NVIDIA's operating liabilities on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question III

What were NVIDIA's invested capital on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question IV

What were NVIDIA's financial assets on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question V

What were NVIDIA's financial obligations on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question VI

What were NVIDIA's net financial obligations on January 30, 2022? Your answer should be in millions of U.S. dollars.

Question VII

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 VIII

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 IX

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 X

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 XI

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 XII

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 XIII

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 XIV

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 XV

For the fiscal year ending on January 30, 2022, what was NVIDIA's cash conversion cycle?

Question XVI

For the fiscal year ending on January 30, 2022, what was NVIDIA's operating asset turnover?

Question XVII

For the fiscal year ending on January 30, 2022, what was NVIDIA's fixed asset turnover?

Question XVIII

For the fiscal year ending on January 30, 2022, what was NVIDIA's invested capital turnover?

Question XIX

For the fiscal year ending on January 30, 2022, what was NVIDIA's gross profit percentage? State your answer as a percentage.

Question XX

For the fiscal year ending on January 30, 2022, what was NVIDIA's NOPAT margin? State your answer as a percentage.

Question XXI

For the fiscal year ending on January 30, 2022, what was NVIDIA's return on invested capital? State your answer as a percentage.

Question XXII

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 XXIII

What was the ratio of NVIDIA's financial obligations to total assets on January 30, 2022? State your answer as a percentage.