2024 Cash Flow Analysis for Nvidia Corporation NVDA

Nvidia Corporation is a leading multinational technology company specializing in the design and manufacture of graphics processing units (GPUs) and related software. Headquartered in Santa Clara, California, Nvidia was founded in 1993 and has become a key player in the tech industry, known for its innovations in gaming, professional visualization, data centers, and automotive markets.

The cash flow statement provides insights into how much cash or cash equivalents a company has generated and utilized over 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 how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Nvidia Corporation in 2024. The width of the bars represents 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. The cash increased during the year, indicating that the company generated more cash than it used. The cash flow from operating activities is the largest source of cash, significantly outweighing the cash used in investing and financing activities.

The cash flow from investing activities is negative, suggesting 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 end on the right with Nvidia's cash position at the end of the year.

Real-Time Cash Flow Counter

To get 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 2024. 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 the company's reported cash flow for 2024. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2024, Nvidia Corporation generated $28,090 million in cash from operating activities, spent $10,566 million on investing activities, and used $13,633 million in financing activities. Consequently, the company's cash balance increased by $3,891 million during the year.

The company's beginning cash balance was $3,389 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 $7,280 million.

Nvidia's capital expenditures for the year were $1,069 million. This amount represents the cash the company 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 $27,021 million in 2024. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Nvidia Corporation's cash flow in 2024 highlights its strong operational performance, with significant cash generation from operating activities. Despite substantial investments and financing outflows, the company managed to increase its cash reserves significantly. The negative cash flow from investing activities indicates a strategic focus on long-term growth through investments, while the negative financing cash flow suggests a commitment to returning value to shareholders and managing debt effectively. Overall, Nvidia's robust free cash flow positions it well for future opportunities and financial stability.