Nvidia Stock Story

NVDA

Stock

USD 188.79 1.53 0.80%

Macroaxis Story

The stock is undergoing above-average trading activities. Nvidia Corp Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 29.93 Billion. The current year Earnings before Tax is expected to grow to about 5.5 B, whereas Working Capital is forecasted to decline to about 11 B. As many of us are excited about technology space, it is fair to go over Nvidia Corp as a unique alternative. Let's analyze the possibilities of Nvidia Corp maintaining its debt level in August.

Published over three weeks ago

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Will Nvidia Corp (NASDAQ:NVDA) be in financial trouble before August?

The company currently holds 11.83 B in liabilities with Debt to Equity (D/E) ratio of 0.44, which is about average as compared to similar companies.

Macroaxis provides trade recommendations on Nvidia Corp to complement and cross-verify current analyst consensus on Nvidia Corp. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.

Will Nvidia Corp (NASDAQ:NVDA) be in financial trouble before August?

Nvidia Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Nvidia Corp, including all of Nvidia Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Nvidia Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Nvidia Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Nvidia Total Debt

Nvidia Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Nvidia Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Nvidia Corp balance sheet include debt obligations and money owed to different Nvidia Corp vendors, workers, and loan providers. Below is the chart of Nvidia main long-term debt accounts currently reported on its balance sheet.

You can use Nvidia Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Nvidia Corp's Liquidity

Nvidia Corp financial leverage refers to using borrowed capital as a funding source to finance Nvidia Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nvidia Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nvidia Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Nvidia Corp, but it might be worth checking our own buy vs. sell analysis

Nvidia Corp exotic insider transaction detected

Legal trades by Nvidia Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Nvidia insider trading alert for general transaction of common stock by Huang Jen Hsun, President and CEO, on 26th of July 2022. This event was filed by Nvidia Corp with SEC on 2022-03-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Nvidia Corp valued fairly by the market?

Nvidia Corp reported the previous year's revenue of 26.91 B. Net Income was 9.75 B with profit before overhead, payroll, taxes, and interest of 17.48 B.

Asset Breakdown

15.8 B

Assets Non Current

8.6 B

Goodwill

23.6 B

Current Assets

	Total Assets	38.41 Billion
	Current Assets	23.62 Billion
	Assets Non Current	15.8 Billion
	Goodwill	8.6 Billion
	Tax Assets	1 Billion

Our perspective of the current Nvidia Corp rise

Current Information Ratio is up to -0.07. Price may slip again. Nvidia Corp exhibits very low volatility with skewness of 0.1 and kurtosis of -0.66. However, we advise investors to further study Nvidia Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nvidia Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nvidia Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Nvidia Corp Implied Volatility

Nvidia Corp's implied volatility exposes the market's sentiment of Nvidia Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nvidia Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nvidia Corp stock will not fluctuate a lot when Nvidia Corp's options are near their expiration.

Our Final Take On Nvidia Corp

Whereas some firms in the semiconductors industry are either recovering or due for a correction, Nvidia may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 16th of July 2022, our current 90 days advice on the company is Cautious Hold. We believe Nvidia Corp is undervalued with very small probability of distress for the next two years.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Nvidia Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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