Nvidia Corporation is a leading multinational technology company that specializes in designing and manufacturing graphics processing units (GPUs) and related software. Headquartered in Santa Clara, California, Nvidia was founded in 1993. The company is renowned for its cutting-edge products in the gaming, professional visualization, data center, and automotive markets.
The cash flow statement provides insight into how much cash or cash equivalents Nvidia has generated and used during a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand Nvidia's management of its cash resources.
The chart above illustrates the cash flow of Nvidia Corporation in 2023. The width of the bars signifies the amount of cash flow, with wider bars indicating larger amounts.
We begin on the left with Nvidia's cash position at the start of the year. Since the cash increased during the year, a portion of that cash was generated from operating activities, despite significant outflows in financing activities. The cash flow from operating activities is the primary source of cash, followed by substantial cash used in investing activities.
The cash flow from investing activities is negative, indicating that Nvidia spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.
After accounting for the change in cash, we conclude on the right with Nvidia's cash position at the end of the year.
To provide a sense of the scale of Nvidia Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.
This is not a live counter of real cash flows as they happen, but a simulation based on Nvidia's reported cash flow for 2023. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.
In 2023, Nvidia Corporation generated $5,641 million in cash from operating activities, spent $7,375 million on investing activities, and used $11,617 million in financing activities. Consequently, the company's cash balance increased by $1,399 million during the year.
Nvidia's beginning cash balance was $1,990 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $3,389 million.
The company's capital expenditures for the year were $1,833 million. This amount represents the cash Nvidia spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $3,808 million in 2023. This amount represents the cash Nvidia has available to pay dividends, repurchase stock, or make other investments.
| Cash Flow from Operations | 5,641 |
| Cash Flow from Investing | 7,375 |
| Cash Flow from Financing | -11,617 |
| Changes in Cash | 1,399 |
| Beginning Cash Position | 1,990 |
| Ending Cash Position | 3,389 |
| Capital Expenditures | -1,833 |
| Free Cash Flow | 3,808 |
All amounts in USD (Millions)
Nvidia Corporation's cash flow in 2023 highlights a robust generation of cash from operating activities, which was sufficient to cover its capital expenditures and contribute to an increase in the cash balance. Despite significant outflows in financing activities, Nvidia managed to end the year with a higher cash balance, demonstrating effective cash management and operational efficiency. The substantial investment in capital expenditures indicates Nvidia's commitment to growth and expansion in its core markets.
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