Financial Condition Analysis Report: NVIDIA Corporation

Executive Summary

Started in 1993, NVIDIA Corporation has come a long way with the established three key objectives aimed for greater responsibility – “Drive operational efficiency and excellence, improve employee recruitment and retention, and manage corporate responsibility risks and reputation” (“Goals and Performance,” 2015). In the initial stages of its growth strategy, the company partnered with SGS Thomson Microelectronics (currently STMicroelectronics) to manufacture chips to be installed in their multimedia accelerator boards (NVIDIA Corporation, 2002). NVIDIA launched its first product in 1995, an NVI PCI Card. It then to the top in 2002 when it was named the fastest growing company by Fortune.

With a growing record over the years, especially in 2017 where its CEO won the “World’s Best CEOs” according to Harvard Business Review and Barron’s, the corporation has grown into a significant investment opportunity (NVIDIA Brochure, 2018). Additionally, Fortune termed NVIDIA as one of the “ World’s Most Admired Companies” while Fast Company named it one of the “Most Innovative Companies.”

Focusing on financial figures from the 2017 annual report, NVIDIA registered an increase in revenue up to US$9.714 billion. The company’s net income also increased to US$3.047 billion. It has total assets of US$11.241 billion with an equity funding of US$7.471 billion (Nvidia Corporation, 2018). The number of employees reported as at January 2018 is 11528.

History and Background Information

NVIDIA Corporation was founded by Jensen Huang (the current President and CEO), Chris Malachowsky, and Curtis Priem. Colette M. Kress is the chief financial officer and executive vice president (“NVIDIA History: A Timeline of Innovation,” n.d.). The company is headquartered in Santa Clara, CA, and was reincorporated in Delaware in 1998 (Nvidia Corporation, 2018).

I. Working Capital Management What are the costs and benefits of ho...