Course project rev

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NVIDIAandAMDFinancialStatementAnalysis.xlsx
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Title Page

Course Project: Financial Statement Analysis
Complete your Title page on this tab.
A Comparative Analysis of NVIDIA Corporation and Advanced Micro Devices (AMD), Inc.
Please include the names of your team members, the course, the date, your instructor's name, and the title for the project.
Team Member(s) Isdory Lyamuya
Course ACCT503
Instructor Professor Sean Wright
Date June 14, 2026
Project Title Financial Statement Analysis: NVIDIA Corporation and Advanced Micro Devices (AMD), Inc.
Fiscal Years Compared NVIDIA fiscal year ended January 26, 2025; AMD fiscal year ended December 28, 2024
Note: Edit the course and instructor fields if the syllabus requires specific wording. Dollar amounts used in the ratio tab are in millions except per share data and stock prices.

Profiles

Complete one paragraph, profiling each company's business, including information such as brief histories, where each company is located, number of employees, the products each company sells, and so forth. Please reference any websites that you used for the profiles on the Bibliography tab.
NVIDIA Corporation is a Santa Clara, California based technology company that pioneered accelerated computing and now operates as a full stack computing infrastructure company. The company began in 1993, and its business includes data center accelerated computing platforms, artificial intelligence solutions, networking, gaming graphics, professional visualization, automotive platforms, and related software. NVIDIA sells GPUs, CPUs, DPUs, systems, software, and services to cloud service providers, enterprises, original equipment manufacturers, distributors, and other ecosystem partners. Its 2025 Form 10-K emphasizes that artificial intelligence and data center scale accelerated computing now drive a major part of its strategy and revenue base.
Advanced Micro Devices, Inc. is a Santa Clara, California based global semiconductor company that develops high performance and adaptive computing products. AMD sells artificial intelligence accelerators, x86 microprocessors, graphics processing units, accelerated processing units, chipsets, data center and professional GPUs, embedded processors, semi custom system on chip products, data processing units, field programmable gate arrays, system on modules, and smart network interface cards. Its 2024 Form 10-K describes four reportable segments: Data Center, Client, Gaming, and Embedded, which show that the company serves cloud, personal computing, gaming, embedded, automotive, industrial, healthcare, storage, and networking markets.

Ratios

Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab, and also include your commentary.
The 2025 NVIDIA and 2024 AMD financial statements were used to calculate the required ratios. Dollar amounts are in millions except per share data and stock prices.
NVIDIA AMD Interpretation and comparison between the two companies' ratios
Each comment explains what the ratio shows, compares the calculated results, and identifies which company performed better for that ratio.
Earnings per Share of Common Stock (basic) Net income 72,880 2.97 1,641 1.01 NVIDIA generated basic EPS of about $2.97, while AMD generated about $1.01. NVIDIA performed better because each common share earned nearly three times AMD's amount.
Basic weighted average shares 24,555 1,620
Current Ratio Current assets 80,126 4.44x 19,049 2.62x NVIDIA's current ratio was about 4.44, compared with AMD's 2.62. NVIDIA performed better because it had a larger current asset cushion for each dollar of current liabilities.
Current liabilities 18,047 7,281
Gross Margin Ratio Net sales - Cost of goods sold 97,858 75.0% 12,725 49.4% NVIDIA's gross margin was about 75.0%, compared with AMD's 49.4%. NVIDIA performed better because it converted a much larger share of sales into gross profit.
Net sales 130,497 25,785
Cost of revenue or total cost of sales 32,639 13,060
Profit Margin Ratio Net income 72,880 55.8% 1,641 6.4% NVIDIA's profit margin was about 55.8%, while AMD's was about 6.4%. NVIDIA performed better because its sales translated into substantially stronger bottom line earnings.
Net sales 130,497 25,785
Inventory Turnover Cost of goods sold 32,639 4.25x 13,060 2.59x NVIDIA turned inventory about 4.25 times, while AMD turned inventory about 2.59 times. NVIDIA performed better because it moved inventory more efficiently during the year.
Average inventory 7,681 5,043
Ending inventory 10,080 5,734
Beginning inventory 5,282 4,351
Days' Sales in Inventory Ending Inventory x 365 10,080 x 365 112.7 5,734 x 365 160.3 NVIDIA held inventory for about 112.7 days, compared with AMD's 160.3 days. NVIDIA performed better because the lower number shows faster movement of inventory into sales.
Cost of Goods Sold 32,639 13,060
Accounts Receivable Turnover Net sales 130,497 7.89x 25,785 4.90x NVIDIA collected receivables about 7.89 times, while AMD collected them about 4.90 times. NVIDIA performed better because it converted receivables into cash more quickly.
Average net accounts receivable 16,532 5,258
Beginning accounts receivable 9,999 4,323
Days' Sales Uncollected Net accounts receivable x 365 23,065 x 365 64.5 6,192 x 365 87.7 NVIDIA's days sales uncollected was about 64.5 days, compared with AMD's 87.7 days. NVIDIA performed better because it collected customer balances sooner.
Net sales 130,497 25,785
Total Asset Turnover Net sales 130,497 1.47x 25,785 0.38x NVIDIA generated about $1.47 of sales for each dollar of average assets, while AMD generated about $0.38. NVIDIA performed better because it used assets more productively.
Average total assets 88,665 68,556
Ending total assets 111,601 69,226
Beginning total assets 65,728 67,885
Return on Total Assets Net income 72,880 82.2% 1,641 2.4% NVIDIA earned about 82.2% on average assets, while AMD earned about 2.4%. NVIDIA performed better because its asset base produced much greater profit.
Average total assets 88,665 68,556
Debt Ratio Total liabilities 32,274 28.9% 11,658 16.8% AMD had the lower debt ratio at about 16.8%, compared with NVIDIA's 28.9%. AMD performed better because liabilities financed a smaller share of its assets.
Total assets 111,601 69,226
Times Interest Earned Ratio Income before income taxes + interest expense 84,273 341.19x 2,081 22.62x NVIDIA covered interest expense about 341.19 times, while AMD covered it about 22.62 times. NVIDIA performed better because it had much stronger interest protection.
Interest expense 247 92
Income before income taxes 84,026 1,989
Dividend Yield Dividend per share of common stock 0.03 0.02% - - NVIDIA had a small dividend yield of about 0.02%, while AMD had no dividend yield. NVIDIA performed better on this ratio, although both companies mainly emphasize growth and reinvestment.
(Please follow the Course Project instructions to calculate the current dividend yield.) Market price per share of common stock 142.62 125.19
Return on Equity Net income 72,880 119.2% 1,641 2.9% NVIDIA's return on equity was about 119.2%, compared with AMD's 2.9%. NVIDIA performed better because shareholder capital produced stronger earnings.
Average total equity 61,153 56,730
Ending total equity 79,327 57,568
Beginning total equity 42,978 55,892
Equity Ratio Total equity 79,327 71.1% 57,568 83.2% AMD had the higher equity ratio at about 83.2%, compared with NVIDIA's 71.1%. AMD performed better because equity financed a larger share of its assets.
Total assets 111,601 69,226
Price-Earnings Ratio Market price per share of common stock as of the balance sheet date 142.62 48.05x 125.19 123.59x NVIDIA's price earnings ratio was about 48.05, while AMD's was about 123.59. NVIDIA performed better because investors paid less for each dollar of current earnings on the required stock dates.
(Please see the Course Project instructions for the dates to use for this ratio.) Earnings per share 2.97 1.01

Summary

You all get the chance to play the role of financial analyst below. The summary compares each company's performance for each major category of ratios and concludes with the stronger investment choice.
Liquidity and Efficiency Ratios
NVIDIA performed better in liquidity and efficiency. Its current ratio of 4.44x exceeded AMD's 2.62x, and its inventory turnover of 4.25x, receivables turnover of 7.89x, and total asset turnover of 1.47x all exceeded AMD's results. NVIDIA also had lower days in inventory and lower days sales uncollected, which shows faster movement of inventory and faster customer collections.
Solvency Ratios
The solvency comparison was mixed. AMD performed better on the debt ratio and equity ratio because only 16.8% of its assets were financed by liabilities and 83.2% were financed by equity. However, NVIDIA performed better on times interest earned because its 341.19x coverage was far higher than AMD's 22.62x coverage.
Profitability Ratios
NVIDIA performed better on profitability. It produced a 75.0% gross margin, 55.8% profit margin, 82.2% return on total assets, and 119.2% return on equity. AMD's comparable results were much lower at 49.4%, 6.4%, 2.4%, and 2.9%, which shows that NVIDIA created stronger earnings from sales, assets, and equity.
Conclusion:
NVIDIA appears to be the better investment based on the required ratio analysis. AMD had a healthier leverage profile, but NVIDIA showed stronger liquidity, efficiency, profitability, interest protection, EPS, dividend yield, and price earnings performance on the required dates. Therefore, NVIDIA provides the stronger overall financial position in this comparison.

Bibliography

Your textbook and any information that you use to profile the companies should be cited as a reference below.
Advanced Micro Devices, Inc. (2025). Form 10-K for the fiscal year ended December 28, 2024. U.S. Securities and Exchange Commission. https://ir.amd.com/financial-information/sec-filings/content/0000002488-25-000012/amd-20241228.htm
NVIDIA Corporation. (2025). Form 10-K for the fiscal year ended January 26, 2025. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1045810/000104581025000023/nvda-20250126.htm
Yahoo Finance. (2025). Advanced Micro Devices, Inc. (AMD) historical data. https://finance.yahoo.com/quote/AMD/history/
Yahoo Finance. (2025). NVIDIA Corporation (NVDA) historical data. https://finance.yahoo.com/quote/NVDA/history/