Question: What is NVIDIA's Return on Equity (ROE) for the year 2024, and how does it compare to the ROE reported in 2023?

Return on Equity (ROE) is calculated using the formula: ROE = (Net Income / Shareholder's Equity) * 100.

For 2024:
Net Income = $29,760 million
Shareholder's Equity = $42,978 million
ROE = ($29,760 / $42,978) * 100 = 69.2%

For 2023:
Net Income = $4,368 million
Shareholder's Equity = $22,101 million
ROE = ($4,368 / $22,101) * 100 = 19.8%

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

, NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52

NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

,
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: How has NVIDIA's Net Profit Margin changed from 2023 to 2024?

Net Profit Margin is calculated using the formula: Net Profit Margin = (Net Income / Revenue) * 100.

For 2024:
Net Income = $29,760 million
Revenue = $60,922 million
Net Profit Margin = ($29,760 / $60,922) * 100 = 48.8%

For 2023:
Net Income = $4,368 million
Revenue = $26,974 million
Net Profit Margin = ($4,368 / $26,974) * 100 = 16.2%

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50


Question: Determine NVIDIA's Gross Profit Margin for 2024 and analyze how it differs from that of 2023.

Gross Profit Margin is calculated using the formula: Gross Profit Margin = (Gross Profit / Revenue) * 100.

For 2024:
Gross Profit = $44,301 million
Revenue = $60,922 million
Gross Profit Margin = ($44,301 / $60,922) * 100 = 72.7%

For 2023:
Gross Profit = $15,356 million
Revenue = $26,974 million
Gross Profit Margin = ($15,356 / $26,974) * 100 = 56.9%

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50


Question: What is the Operating Profit Margin for NVIDIA in 2024, and how does it compare to 2023?

Operating Profit Margin is calculated using the formula: Operating Profit Margin = (Operating Income / Revenue) * 100.

For 2024:
Operating Income = $32,972 million
Revenue = $60,922 million
Operating Profit Margin = ($32,972 / $60,922) * 100 = 54.1%

For 2023:
Operating Income = $4,224 million
Revenue = $26,974 million
Operating Profit Margin = ($4,224 / $26,974) * 100 = 15.7%

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50


Question: What is the Debt to Equity Ratio for NVIDIA in 2024, and how does it compare to 2023?

Debt to Equity Ratio is calculated using the formula: Debt to Equity Ratio = Total Debt / Shareholders' Equity.

For 2024:
Total Debt = Short-term debt + Long-term debt = $1,250 million + $8,459 million = $9,709 million
Shareholders' Equity = $42,978 million
Debt to Equity Ratio = $9,709 / $42,978 = 0.23

For 2023:
Total Debt = Short-term debt + Long-term debt = $1,250 million + $9,703 million = $10,953 million
Shareholders' Equity = $22,101 million
Debt to Equity Ratio = $10,953 / $22,101 = 0.50

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: How has NVIDIA's Interest Coverage Ratio changed from 2023 to 2024?

Interest Coverage Ratio is calculated using the formula: Interest Coverage Ratio = EBIT / Interest Expenses.

For 2024:
EBIT (Operating Income) = $32,972 million
Interest Expenses = $257 million
Interest Coverage Ratio = $32,972 / $257 = 128.3

For 2023:
EBIT (Operating Income) = $4,224 million
Interest Expenses = $262 million
Interest Coverage Ratio = $4,224 / $262 = 16.1

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50


Question: Calculate the Financial Leverage Ratio for NVIDIA in 2024 and compare it to 2023

Financial Leverage Ratio is calculated using the formula: Financial Leverage Ratio = Total Assets / Shareholders' Equity.

For 2024:
Total Assets = $65,728 million
Shareholders' Equity = $42,978 million
Financial Leverage Ratio = $65,728 / $42,978 = 1.53

For 2023:
Total Assets = $41,182 million
Shareholders' Equity = $22,101 million
Financial Leverage Ratio = $41,182 / $22,101 = 1.86

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the Debt Service Coverage Ratio for NVIDIA in 2024, and how does it compare to 2023?

Debt Service Coverage Ratio is calculated using the formula: Debt Service Coverage Ratio = Net Operating Income / Debt Service.

For 2024:
Net Operating Income (Operating Income) = $32,972 million
Debt Service (Interest Expenses) = $257 million
Debt Service Coverage Ratio = $32,972 / $257 = 128.3

For 2023:
Net Operating Income (Operating Income) = $4,224 million
Debt Service (Interest Expenses) = $262 million
Debt Service Coverage Ratio = $4,224 / $262 = 16.1

Analysis:
NVIDIA's Debt Service Coverage Ratio increased significantly from 16.1 in 2023 to 128.3 in 2024. This substantial improvement indicates that the company has become much more capable of covering its debt service obligations with its operating income. The higher ratio reflects improved profitability and financial health, suggesting that NVIDIA is in a strong position to meet its debt service obligations.

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50


Question: What is the quick ratio of NVIDIA for 2023 and 2022?

Quick Ratio is calculated using the formula: Quick Ratio = (Current Assets - Inventory) / Current Liabilities.

For 2024:
Current Assets = $44,345 million
Inventory = $5,282 million
Current Liabilities = $10,631 million
Quick Ratio = ($44,345 - $5,282) / $10,631 = 3.67

For 2023:
Current Assets = $23,073 million
Inventory = $5,159 million
Current Liabilities = $6,563 million
Quick Ratio = ($23,073 - $5,159) / $6,563 = 2.73

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the cash ratio of NVIDIA for FY 2023 and 2022?

Method 1:
Cash Ratio is calculated using the formula: Cash Ratio = Cash & Cash Equivalents / Current Liabilities.

For 2024:
Cash & Cash Equivalents = $7,280 million
Current Liabilities = $10,631 million
Cash Ratio = $7,280 / $10,631 = 0.68

For 2023:
Cash & Cash Equivalents = $3,389 million
Current Liabilities = $6,563 million
Cash Ratio = $3,389 / $6,563 = 0.52

Method 2:
FY 2024:
- Cash and Cash Equivalents: $7,280 million
- Marketable Securities: $18,704 million
- Total Current Liabilities: $10,631 million

FY 2023:
- Cash and Cash Equivalents: $3,389 million
- Marketable Securities: $9,907 million
- Total Current Liabilities: $6,563 million

Now, let's calculate the cash ratio for both years:

For FY 2024:
Cash Ratio = ($7,280 + $18,704) / $10,631 = $25,984 / $10,631 ≈ 2.44

For FY 2023:
Cash Ratio = ($3,389 + $9,907) / $6,563 = $13,296 / $6,563 ≈ 2.03

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the working capital of NVIDIA for 2023 and 2022?

Working Capital is calculated using the formula: Working Capital = Current Assets - Current Liabilities.

For 2023:
Current Assets = $44,345 million
Current Liabilities = $10,631 million
Working Capital = $44,345 - $10,631 = $33,714 million

For 2022:
Current Assets = $23,073 million
Current Liabilities = $6,563 million
Working Capital = $23,073 - $6,563 = $16,510 million

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the change in NVIDIA's Days Sales Outstanding (DSO) from 2023 to 2024?

Days Sales Outstanding (DSO) is calculated using the formula: DSO = (Accounts Receivable / Total Credit Sales) * Number of Days.

For 2024:
Accounts Receivable = $9,999 million
Total Credit Sales (Revenue) = $60,922 million
Number of Days = 365
DSO = ($9,999 / $60,922) * 365 = 59.9 days

For 2023:
Accounts Receivable = $3,827 million
Total Credit Sales (Revenue) = $26,974 million
Number of Days = 365
DSO = ($3,827 / $26,974) * 365 = 51.8 days

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

, NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52

NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

,
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the Inventory Turnover Ratio for NVIDIA in 2024, and how does it compare to 2023?

Inventory Turnover Ratio is calculated using the formula: Inventory Turnover = Cost of Goods Sold / Average Inventory.

For 2024:
Cost of Goods Sold = $16,621 million
Average Inventory = ($5,282 million + $5,159 million) / 2 = $5,220.5 million
Inventory Turnover = $16,621 / $5,220.5 = 3.18

For 2023:
Cost of Goods Sold = $11,618 million
Average Inventory = ($5,159 million + $5,282 million) / 2 = $5,220.5 million
Inventory Turnover = $11,618 / $5,220.5 = 2.23

Analysis:
NVIDIA's Inventory Turnover Ratio increased from 2.23 in 2023 to 3.18 in 2024. This improvement indicates that the company has become more efficient in managing its inventory, selling and replacing it more frequently. The higher ratio suggests better inventory management and operational efficiency, reflecting positively on the company's financial health.

Item 15. Exhibit and Financial Statement Schedules

NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 50:
NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

, NVIDIA CORP 10-K form for the fiscal year ended 2024-01-28, page 52:
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52

NVIDIA Corporation and Subsidiaries

Consolidated Statements of Income

(In millions, except per share data)

	Year Ended

	Jan 28, 2024		Jan 29, 2023		Jan 30, 2022

Revenue	$	60,922 			$	26,974 			$	26,914

Cost of revenue	16,621 			11,618 			9,439

Gross profit	44,301 			15,356 			17,475

Operating expenses

Research and development	8,675 			7,339 			5,268

Sales, general and administrative	2,654 			2,440 			2,166

Acquisition termination cost	- 			1,353 			-

Total operating expenses	11,329 			11,132 			7,434

Operating income	32,972 			4,224 			10,041

Interest income	866 			267 			29

Interest expense	(257)			(262)			(236)

Other, net	237 			(48)			107

Other income (expense), net	846 			(43)			(100)

Income before income tax	33,818 			4,181 			9,941

Income tax expense (benefit)	4,058 			(187)			189

Net income	$	29,760 			$	4,368 			$	9,752

Net income per share:

Basic	$	12.05 			$	1.76 			$	3.91

Diluted	$	11.93 			$	1.74 			$	3.85

Weighted average shares used in per share computation:

Basic	2,469 			2,487 			2,496

Diluted	2,494 			2,507 			2,535

See accompanying notes to the consolidated financial statements.
50

,
NVIDIA Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions, except par value)

 	Jan 28, 2024		Jan 29, 2023

Assets

Current assets:

Cash and cash equivalents	$	7,280 			$	3,389

Marketable securities	18,704 			9,907

Accounts receivable, net	9,999 			3,827

Inventories	5,282 			5,159

Prepaid expenses and other current assets	3,080 			791

Total current assets	44,345 			23,073

Property and equipment, net	3,914 			3,807

Operating lease assets	1,346 			1,038

Goodwill	4,430 			4,372

Intangible assets, net	1,112 			1,676

Deferred income tax assets	6,081 			3,396

Other assets	4,500 			3,820

Total assets	$	65,728 			$	41,182

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	2,699 			$	1,193

Accrued and other current liabilities	6,682 			4,120

Short-term debt	1,250 			1,250

Total current liabilities	10,631 			6,563

Long-term debt	8,459 			9,703

Long-term operating lease liabilities 	1,119 			902

Other long-term liabilities	2,541 			1,913

Total liabilities	22,750 			19,081

Commitments and contingencies - see Note 13

Shareholders' equity:

Preferred stock, $0.001 par value; 2 shares authorized; none issued	- 			-

Common stock, $0.001 par value; 8,000 shares authorized; 2,464 shares issued and outstanding as of January 28, 2024; 2,466 shares issued and outstanding as of January 29, 2023	2 			2

Additional paid-in capital	13,132 			11,971

 Accumulated other comprehensive income (loss)	27 			(43)

Retained earnings	29,817 			10,171

Total shareholders' equity	42,978 			22,101

Total liabilities and shareholders' equity	$	65,728 			$	41,182

See accompanying notes to the consolidated financial statements.
52


Question: What is the EBITDA Margin for Halliburton in 2023, and how does it compare to 2022?

EBITDA Margin is calculated as (EBITDA / Revenue) * 100. EBITDA is derived from Operating Income plus Depreciation, Depletion, and Amortization. For Halliburton in 2023, the operating income is $4,083 million, and the depreciation, depletion, and amortization is $998 million. Therefore, the EBITDA is $4,083 + $998 = $5,081 million. The total revenue is $23,018 million. The EBITDA Margin for 2023 is (5,081 / 23,018) * 100 = 22.07%. In 2022, the operating income was $2,707 million, and the depreciation, depletion, and amortization was $940 million. Therefore, the EBITDA was $2,707 + $940 = $3,647 million. The total revenue was $20,297 million. The EBITDA Margin for 2022 is (3,647 / 20,297) * 100 = 17.97%. Comparing the two years, Halliburton's EBITDA Margin increased from 17.97% in 2022 to 22.07% in 2023, indicating improved operational profitability before accounting for non-cash expenses.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46:

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

	HALLIBURTON COMPANY Consolidated Statements of Cash Flows

		Year Ended December 31

Millions of dollars	2023	2022	2021

Cash flows from operating activities:

Net income	$	2,662 		$	1,595 		$	1,468

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation, depletion, and amortization	998 		940 		904

Deferred income tax provision (benefit)	196 		70 		(486)

Impairments and other charges	- 		366 		12

Changes in assets and liabilities:

Inventories	(303)		(642)		(10)

Receivables	(257)		(1,151)		(500)

Accounts payable	49 		852 		795

Other operating activities	113 		212 		(272)

Total cash flows provided by operating activities	3,458 		2,242 		1,911

Cash flows from investing activities:

Capital expenditures	(1,379)		(1,011)		(799)

Purchases of investment securities	(492)		(75)		(5)

Proceeds from sales of property, plant, and equipment	195 		200 		257

Sales of investment securities	131 		- 		-

Proceeds from a structured real estate transaction	- 		- 		87

Other investing activities	(114)		(81)		(74)

Total cash flows used in investing activities	(1,659)		(967)		(534)

Cash flows from financing activities:

Stock repurchase program	(800)		(250)		-

Dividends to shareholders	(576)		(435)		(161)

Payments on long-term borrowings	(305)		(1,242)		(700)

Proceeds from issuance of common stock	136 		229 		79

Other financing activities	(126)		(100)		(56)

Total cash flows used in financing activities	(1,671)		(1,798)		(838)

Effect of exchange rate changes on cash	(210)		(175)		(58)

Increase / (decrease) in cash and equivalents	(82)		(698)		481

Cash and equivalents at beginning of year	2,346 		3,044 		2,563

Cash and equivalents at end of year	$	2,264 		$	2,346 		$	3,044

Supplemental disclosure of cash flow information:

Cash payments during the period for:

Interest	$	460 		$	487 		$	517

Income taxes	$	616 		$	354 		$	214

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 46


Question: How does Halliburton's solvency position in 2023 compare to 2022 based on the Debt Equity Ratio?

Method 1:
To compare Halliburton's solvency position in 2023 to 2022 based on the Debt Equity Ratio, we need to calculate the ratio for both years.

For 2023:
Total Debt = $13,244 million
Shareholders' Equity = $9,433 million
Debt Equity Ratio = $13,244 million / $9,433 million ≈ 1.40

For 2022:
Total Debt = $13,273 million (sum of current liabilities $5,345 million and long-term debt $7,928 million)
Shareholders' Equity = $7,977 million
Debt Equity Ratio = $13,273 million / $7,977 million ≈ 1.66

Comparing the two years, the Debt Equity Ratio decreased from 1.66 in 2022 to 1.40 in 2023. This decrease indicates an improvement in Halliburton's solvency position, as the company has reduced its reliance on debt relative to equity. A lower Debt Equity Ratio suggests a stronger financial position with less financial risk, as the company is less leveraged and has a higher proportion of equity financing. This improvement reflects positively on Halliburton's financial stability and its ability to manage its debt levels effectively.

Method 2:
Debt-to-Equity Ratio Calculation:

For 2023:

Total Debt = $7,636 million (based on long-term debt only)
Shareholders' Equity = $9,433 million
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity = $7,636 / $9,433 ≈ 0.81
For 2022:

Total Debt = $7,928 million (based on long-term debt only)
Shareholders' Equity = $7,977 million
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity = $7,928 / $7,977 ≈ 0.99

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: Evaluate Halliburton's receivables turnover ratio from 2021 to 2023.

The receivables turnover ratio is calculated using the formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable. For Halliburton, we will use total revenue as a proxy for net credit sales, as specific net credit sales data is not provided.

Total revenue for Halliburton over the years is as follows:
- 2023: $23,018 million
- 2022: $20,297 million
- 2021: $15,295 million

The average accounts receivable for each year can be calculated as the average of the beginning and ending accounts receivable for that year. However, the beginning accounts receivable for 2021 is not provided, so we will use the ending accounts receivable of the previous year as the beginning accounts receivable for the current year.

- Average Accounts Receivable 2023: ($4,627 million + $4,860 million) / 2 = $4,743.5 million
- Average Accounts Receivable 2022: ($4,627 million + $4,627 million) / 2 = $4,627 million
- Average Accounts Receivable 2021: ($4,627 million + $4,627 million) / 2 = $4,627 million

Using these values, the receivables turnover ratios are:
- 2023: $23,018 million / $4,743.5 million = 4.85
- 2022: $20,297 million / $4,627 million = 4.39
- 2021: $15,295 million / $4,627 million = 3.31

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: What was the Days Payable Outstanding (DPO) of Halliburton's  over the period from 2021 to 2023?

Days Payable Outstanding (DPO) is calculated using the formula:
DPO = (Accounts Payable / Cost of Goods Sold) * Number of Days.

The Cost of Goods Sold (COGS) is calculated as the sum of "Cost of Services" and "Cost of Sales" from the Consolidated Statements of Operations.

For 2023:

Cost of Services = $13,402 million
Cost of Sales = $5,256 million
COGS = $13,402 million + $5,256 million = $18,658 million
For 2022:

Cost of Services = $12,381 million
Cost of Sales = $4,603 million
COGS = $12,381 million + $4,603 million = $16,984 million
For 2021:

Cost of Services = $9,745 million
Cost of Sales = $3,534 million
COGS = $9,745 million + $3,534 million = $13,279 million
Using the Accounts Payable data from the Consolidated Balance Sheets:

Accounts Payable (2023): $3,147 million
Accounts Payable (2022): $3,121 million
Note: The Accounts Payable for 2021 is not provided, so we cannot calculate the DPO for 2021 accurately.

DPO for each year:
For 2023:
DPO = ($3,147 million / $18,658 million) * 365 = 61.5 days

For 2022:
DPO = ($3,121 million / $16,984 million) * 365 = 67.1 days

Analysis:
The DPO for Halliburton decreased from 67.1 days in 2022 to 61.5 days in 2023, indicating that the company is paying its suppliers more quickly. The calculation for 2021 could not be completed due to missing Accounts Payable data.

Item 8. Financial Statements and Supplementary Data.

HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43:

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45:

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45

	HALLIBURTON COMPANY Consolidated Statements of Operations

		Year Ended December 31

Millions of dollars and shares except per share data	2023	2022	2021

Revenue:

Services	$	16,483 		$	14,749 		$	10,989

Product sales	6,535 		5,548 		4,306

Total revenue	23,018 		20,297 		15,295

Operating costs and expenses:

Cost of services	13,402 		12,381 		9,745

Cost of sales	5,256 		4,603 		3,534

General and administrative	226 		240 		204

SAP S4 upgrade expense	51 		- 		-

Impairments and other charges	- 		366 		12

Total operating costs and expenses	18,935 		17,590 		13,495

Operating income	4,083 		2,707 		1,800

Interest expense, net of interest income of $81, $29, and $9	(395)		(463)		(520)

Loss on Blue Chip Swap transactions	(110)		- 		-

Argentina currency impact	(131)		(30)		6

Loss on early extinguishment of debt	- 		(42)		-

Other, net	(84)		(62)		(34)

Income before income taxes	3,363 		2,110 		1,252

Income tax benefit (provision)	(701)		(515)		216

Net income	$	2,662 		$	1,595 		$	1,468

Net income attributable to noncontrolling interest 	(24)		(23)		(11)

Net income attributable to company	$	2,638 		$	1,572 		$	1,457

Basic net income per share	$	2.93 		$	1.74 		$	1.63

Diluted net income per share	$	2.92 		$	1.73 		$	1.63

Basic weighted average common shares outstanding	899 		904 		892

Diluted weighted average common shares outstanding	902 		908 		892

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 43

,

HALLIBURTON COMPANY Consolidated Balance Sheets

		December 31

Millions of dollars and shares except per share data	2023	2022

Assets

Current assets:

Cash and equivalents	$	2,264 		$	2,346

Receivables (net of allowances for credit losses of $742 and $731)	4,860 		4,627

Inventories	3,226 		2,923

Other current assets	1,193 		1,056

Total current assets	11,543 		10,952

Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)	4,900 		4,348

Goodwill	2,850 		2,829

Deferred income taxes	2,505 		2,636

Operating lease right-of-use assets	1,088 		913

Other assets	1,797 		1,577

Total assets	$	24,683 		$	23,255

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable	$	3,147 		$	3,121

Accrued employee compensation and benefits	689 		634

Income taxes payable	390 		294

Taxes other than income	370 		349

Current portion of operating lease liabilities 	262 		224

Other current liabilities	750 		723

Total current liabilities	5,608 		5,345

Long-term debt	7,636 		7,928

Operating lease liabilities	911 		791

Employee compensation and benefits	408 		408

Other liabilities	687 		806

Total liabilities	15,250 		15,278

Shareholders' equity:

Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares)	2,663 		2,664

Paid-in capital in excess of par value	63 		50

Accumulated other comprehensive loss	(331)		(230)

Retained earnings	12,536 		10,572

Treasury stock, at cost (176 and 164 shares)	(5,540)		(5,108)

Company shareholders' equity	9,391 		7,948

Noncontrolling interest in consolidated subsidiaries	42 		29

Total shareholders' equity	9,433 		7,977

Total liabilities and shareholders' equity	$	24,683 		$	23,255

	See notes to consolidated financial statements.

HAL 2023 FORM 10-K | 45


Question: How does Discover’s Allowance for Loan Losses to Total Loans Ratio in 2023 compare to previous years?

To analyze Discover’s Allowance for Loan Losses to Total Loans Ratio, we compare the ratio for 2023 with previous years:
2023: Allowance for Loan Losses = $9.283 billion, Total Loans = $128.409 billion, Ratio =7.2%
2022: Allowance for Loan Losses = $7.374 billion, Total Loans = $112.120 billion, Ratio = 6.6%
As per the management, The build in the allowance for credit losses over the years, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.

Item 8.    Financial Statements and Supplementary Data

Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85:
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)

	December 31,

	2023		2022

Assets

Cash and cash equivalents	$	11,685 			$	8,856

Restricted cash	43 			41

Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)	13,655 			12,208

Loan receivables

Loan receivables	128,409 			112,120

Allowance for credit losses	(9,283)			(7,374)

Net loan receivables	119,126 			104,746

Premises and equipment, net	1,091 			1,003

Goodwill	255 			255

Other assets	5,667 			4,597

Total assets	$	151,522 			$	131,706

Liabilities and Stockholders' Equity

Liabilities

Deposits

Interest-bearing deposit accounts	$	107,493 			$	90,151

Non-interest-bearing deposit accounts	1,438 			1,485

Total deposits	108,931 			91,636

Short-term borrowings	750 			-

Long-term borrowings	20,581 			20,108

Accrued expenses and other liabilities	6,432 			5,618

Total liabilities	136,694 			117,362

Commitments, contingencies and guarantees (Notes 15, 18 and 19)

Stockholders' Equity

Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively	6 			6

Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively	1,056 			1,056

Additional paid-in capital	4,553 			4,468

Retained earnings	30,448 			28,207

Accumulated other comprehensive loss	(225)			(339)

Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively	(21,010)			(19,054)

Total stockholders' equity	14,828 			14,344

Total liabilities and stockholders' equity	$	151,522 			$	131,706

The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.

	December 31,

	2023		2022

Assets

Restricted cash	$	43 			$	41

Loan receivables	$	30,590 			$	25,937

Allowance for credit losses allocated to securitized loan receivables	$	(1,347)			$	(1,152)

Other assets	$	3 			$	3

Liabilities

Short- and long-term borrowings	$	11,743 			$	10,259

Accrued expenses and other liabilities	$	19 			$	14

See Notes to the Consolidated Financial Statements.

-85-

, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 104:
Allowance for Credit Losses

The following tables provide changes in the Company's allowance for credit losses (dollars in millions):

	For the Year Ended December 31, 2023

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2022	$	5,883 			$	839 			$	595 			$	57 			$	7,374

Cumulative effect of ASU No. 2022-02 adoption(1)	(66)			- 			(2)			- 			(68)

Balance at January 1, 2023	5,817 			839 			593 			57 			7,306

Additions

Provision for credit losses(2)	5,476 			152 			363 			28 			6,019

Deductions

Charge-offs	(4,481)			(155)			(290)			(1)			(4,927)

Recoveries	807 			22 			56 			- 			885

Net charge-offs	(3,674)			(133)			(234)			(1)			(4,042)

Balance at December 31, 2023	$	7,619 			$	858 			$	722 			$	84 			$	9,283

	For the Year Ended December 31, 2022

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2021	$	5,273 			$	843 			$	662 			$	44 			$	6,822

Additions

Provision for credit losses(2)	2,233 			99 			24 			13 			2,369

Deductions

Charge-offs	(2,417)			(126)			(159)			- 			(2,702)

Recoveries	794 			23 			68 			- 			885

Net charge-offs	(1,623)			(103)			(91)			- 			(1,817)

Balance at December 31, 2022	$	5,883 			$	839 			$	595 			$	57 			$	7,374

	For the Year Ended December 31, 2021

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2020	$	6,491 			$	840 			$	857 			$	38 			$	8,226

Additions

Provision for credit losses(2)	229 			67 			(75)			6 			227

Deductions

Charge-offs	(2,255)			(89)			(190)			- 			(2,534)

Recoveries	808 			25 			70 			- 			903

Net charge-offs	(1,447)			(64)			(120)			- 			(1,631)

Balance at December 31, 2021	$	5,273 			$	843 			$	662 			$	44 			$	6,822

(1)Represents the adjustment to the allowance for credit losses as a result of the adoption of ASU No. 2020-02 on January 1, 2023, which eliminated the requirement to apply discounted cash flow measurements for certain troubled debt restructurings.
(2)Excludes a $1 million, $10 million and $9 million adjustment to the liability for expected credit losses on unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively, as the liability is recorded in accrued expenses and other liabilities in the Company's consolidated statements of financial condition.
The allowance for credit losses was approximately $9.3 billion at December 31, 2023, which reflects a $1.9 billion build from the amount of the allowance for credit losses at December 31, 2022. The build in the allowance for credit losses between December 31, 2023 and December 31, 2022, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.
-104-

DISCOVER FINANCIAL SERVICES

Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)

	December 31,

	2023		2022

Assets

Cash and cash equivalents	$	11,685 			$	8,856

Restricted cash	43 			41

Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)	13,655 			12,208

Loan receivables

Loan receivables	128,409 			112,120

Allowance for credit losses	(9,283)			(7,374)

Net loan receivables	119,126 			104,746

Premises and equipment, net	1,091 			1,003

Goodwill	255 			255

Other assets	5,667 			4,597

Total assets	$	151,522 			$	131,706

Liabilities and Stockholders' Equity

Liabilities

Deposits

Interest-bearing deposit accounts	$	107,493 			$	90,151

Non-interest-bearing deposit accounts	1,438 			1,485

Total deposits	108,931 			91,636

Short-term borrowings	750 			-

Long-term borrowings	20,581 			20,108

Accrued expenses and other liabilities	6,432 			5,618

Total liabilities	136,694 			117,362

Commitments, contingencies and guarantees (Notes 15, 18 and 19)

Stockholders' Equity

Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively	6 			6

Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively	1,056 			1,056

Additional paid-in capital	4,553 			4,468

Retained earnings	30,448 			28,207

Accumulated other comprehensive loss	(225)			(339)

Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively	(21,010)			(19,054)

Total stockholders' equity	14,828 			14,344

Total liabilities and stockholders' equity	$	151,522 			$	131,706

The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.

	December 31,

	2023		2022

Assets

Restricted cash	$	43 			$	41

Loan receivables	$	30,590 			$	25,937

Allowance for credit losses allocated to securitized loan receivables	$	(1,347)			$	(1,152)

Other assets	$	3 			$	3

Liabilities

Short- and long-term borrowings	$	11,743 			$	10,259

Accrued expenses and other liabilities	$	19 			$	14

See Notes to the Consolidated Financial Statements.

-85-

,
Allowance for Credit Losses

The following tables provide changes in the Company's allowance for credit losses (dollars in millions):

	For the Year Ended December 31, 2023

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2022	$	5,883 			$	839 			$	595 			$	57 			$	7,374

Cumulative effect of ASU No. 2022-02 adoption(1)	(66)			- 			(2)			- 			(68)

Balance at January 1, 2023	5,817 			839 			593 			57 			7,306

Additions

Provision for credit losses(2)	5,476 			152 			363 			28 			6,019

Deductions

Charge-offs	(4,481)			(155)			(290)			(1)			(4,927)

Recoveries	807 			22 			56 			- 			885

Net charge-offs	(3,674)			(133)			(234)			(1)			(4,042)

Balance at December 31, 2023	$	7,619 			$	858 			$	722 			$	84 			$	9,283

	For the Year Ended December 31, 2022

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2021	$	5,273 			$	843 			$	662 			$	44 			$	6,822

Additions

Provision for credit losses(2)	2,233 			99 			24 			13 			2,369

Deductions

Charge-offs	(2,417)			(126)			(159)			- 			(2,702)

Recoveries	794 			23 			68 			- 			885

Net charge-offs	(1,623)			(103)			(91)			- 			(1,817)

Balance at December 31, 2022	$	5,883 			$	839 			$	595 			$	57 			$	7,374

	For the Year Ended December 31, 2021

 	Credit Card Loans		Private StudentLoans		Personal Loans		Other Loans		Total Loans

Balance at December 31, 2020	$	6,491 			$	840 			$	857 			$	38 			$	8,226

Additions

Provision for credit losses(2)	229 			67 			(75)			6 			227

Deductions

Charge-offs	(2,255)			(89)			(190)			- 			(2,534)

Recoveries	808 			25 			70 			- 			903

Net charge-offs	(1,447)			(64)			(120)			- 			(1,631)

Balance at December 31, 2021	$	5,273 			$	843 			$	662 			$	44 			$	6,822

(1)Represents the adjustment to the allowance for credit losses as a result of the adoption of ASU No. 2020-02 on January 1, 2023, which eliminated the requirement to apply discounted cash flow measurements for certain troubled debt restructurings.
(2)Excludes a $1 million, $10 million and $9 million adjustment to the liability for expected credit losses on unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively, as the liability is recorded in accrued expenses and other liabilities in the Company's consolidated statements of financial condition.
The allowance for credit losses was approximately $9.3 billion at December 31, 2023, which reflects a $1.9 billion build from the amount of the allowance for credit losses at December 31, 2022. The build in the allowance for credit losses between December 31, 2023 and December 31, 2022, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.
-104-


Question: How has the interest coverage ratio changed over time?

The interest coverage ratio measures a company’s ability to cover its interest expenses with its earnings before interest and taxes. It is calculated as the ratio of Earnings before interest and taxes (EBIT) to Interest Expense.
The ratio for the period provided can be calculated as follows:

2023: EBIT = 3,826+4,746 = 8,572 million
Interest Expense = 4,726 million
Interest Coverage Ratio = 1.80 times

2022: EBIT = 5,718+1,865 = 8,572 million
Interest Expense = 1,865 million
Interest Coverage Ratio = 4.07 times

2021: EBIT = 7,028+1,134 = 8,572 million
Interest Expense = 1,134 million
Interest Coverage Ratio = 7.19 times

The declining trend in the interest coverage ratio from 2021 to 2023 points to increasing difficulty in meeting interest obligations.

Item 8.    Financial Statements and Supplementary Data

Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86:
DISCOVER FINANCIAL SERVICES

Consolidated Statements of Income

(dollars in millions, except for share amounts)

 	For the Years Ended December 31,

 	2023		2022		2021

Interest income

Credit card loans	$	14,438 			$	10,632 			$	8,717

Other loans	2,515 			1,870 			1,734

Investment securities	449 			179 			182

Other interest income	443 			183 			18

Total interest income	17,845 			12,864 			10,651

Interest expense

Deposits	3,886 			1,257 			661

Short-term borrowings	5 			2 			-

Long-term borrowings	855 			606 			473

Total interest expense	4,746 			1,865 			1,134

Net interest income	13,099 			10,999 			9,517

Provision for credit losses	6,018 			2,359 			218

Net interest income after provision for credit losses	7,081 			8,640 			9,299

Other income

Discount and interchange revenue, net	1,447 			1,380 			1,188

Protection products revenue	172 			172 			165

Loan fee income	763 			632 			464

Transaction processing revenue	303 			249 			227

(Losses) gains on equity investments	(9)			(214)			424

Other income	85 			75 			66

Total other income	2,761 			2,294 			2,534

Other expense

Employee compensation and benefits	2,434 			2,139 			1,986

Marketing and business development	1,164 			1,035 			810

Information processing and communications	608 			513 			500

Professional fees	1,041 			871 			797

Premises and equipment	89 			118 			92

Other expense	680 			540 			620

Total other expense	6,016 			5,216 			4,805

Income before income taxes	3,826 			5,718 			7,028

Income tax expense	886 			1,344 			1,606

Net income	$	2,940 			$	4,374 			$	5,422

Net income allocated to common stockholders	$	2,859 			$	4,286 			$	5,323

Basic earnings per common share	$	11.27 			$	15.45 			$	17.75

Diluted earnings per common share	$	11.26 			$	15.44 			$	17.74

See Notes to the Consolidated Financial Statements.

-86-


Question: Can you provide the Net Profit Margin for Goldman Sachs for Q1 2024?

The Net Profit Margin for Goldman Sachs for the first quarter of 2024 is calculated as follows:
Net Profit Margin = (Net Income / Revenue) * 100
Net Income (2024 Q1) = $4,132 million
Revenue (2024 Q1) = $14,213 million
Net Profit Margin = (4,132 / 14,213) * 100 = 29.07%

GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-03-31, page 1:
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(Unaudited)
|    |                                                |                         |       |       |        |    |       |
|---:|:-----------------------------------------------|:------------------------|:------|:------|:-------|:---|:------|
|  2 |                                                | Three MonthsEnded March |       |       |        |    |       |
|  3 | in millions, except per share amounts          | 2024                    |       | 2023  |        |    |       |
|  4 | Revenues                                       |                         |       |       |        |    |       |
|  5 | Investment banking                             | $                       | 2,085 |       |        | $  | 1,578 |
|  6 | Investment management                          | 2,491                   |       |       | 2,289  |    |       |
|  7 | Commissions and fees                           | 1,077                   |       |       | 1,088  |    |       |
|  8 | Market making                                  | 5,992                   |       |       | 5,433  |    |       |
|  9 | Other principal transactions                   | 960                     |       |       | 55     |    |       |
| 10 | Total non-interest revenues                    | 12,605                  |       |       | 10,443 |    |       |
| 12 | Interest income                                | 19,555                  |       |       | 14,938 |    |       |
| 13 | Interest expense                               | 17,947                  |       |       | 13,157 |    |       |
| 14 | Net interest income                            | 1,608                   |       |       | 1,781  |    |       |
| 15 | Total net revenues                             | 14,213                  |       |       | 12,224 |    |       |
| 16 | Provision for credit losses                    | 318                     |       |       | (171)  |    |       |
| 17 | Operating expenses                             |                         |       |       |        |    |       |
| 18 | Compensation and benefits                      | 4,585                   |       |       | 4,090  |    |       |
| 19 | Transaction based                              | 1,497                   |       |       | 1,405  |    |       |
| 20 | Market development                             | 153                     |       |       | 172    |    |       |
| 21 | Communications and technology                  | 470                     |       |       | 466    |    |       |
| 22 | Depreciation and amortization                  | 627                     |       |       | 970    |    |       |
| 23 | Occupancy                                      | 247                     |       |       | 265    |    |       |
| 24 | Professional fees                              | 384                     |       |       | 383    |    |       |
| 25 | Other expenses                                 | 695                     |       |       | 651    |    |       |
| 26 | Total operating expenses                       | 8,658                   |       |       | 8,402  |    |       |
| 28 | Pre-tax earnings                               | 5,237                   |       |       | 3,993  |    |       |
| 29 | Provision for taxes                            | 1,105                   |       |       | 759    |    |       |
| 30 | Net earnings                                   | 4,132                   |       |       | 3,234  |    |       |
| 31 | Preferred stock dividends                      | 201                     |       |       | 147    |    |       |
| 32 | Net earnings applicable to common shareholders | $                       | 3,931 |       |        | $  | 3,087 |
| 34 | Earnings per common share                      |                         |       |       |        |    |       |
| 35 | Basic                                          | $                       | 11.67 |       |        | $  | 8.87  |
| 36 | Diluted                                        | $                       | 11.58 |       |        | $  | 8.79  |
| 38 | Average common shares                          |                         |       |       |        |    |       |
| 39 | Basic                                          | 335.6                   |       | 346.6 |        |    |       |
| 40 | Diluted                                        | 339.5                   |       | 351.3 |        |    |       |

Consolidated Statements of Comprehensive Income

(Unaudited)
|    |                                                            |                         |       |      |      |    |       |
|---:|:-----------------------------------------------------------|:------------------------|:------|:-----|:-----|:---|:------|
|  2 |                                                            | Three MonthsEnded March |       |      |      |    |       |
|  3 | $ in millions                                              | 2024                    |       | 2023 |      |    |       |
|  4 | Net earnings                                               | $                       | 4,132 |      |      | $  | 3,234 |
|  5 | Other comprehensive income/(loss) adjustments, net of tax: |                         |       |      |      |    |       |
|  6 | Currency translation                                       | 26                      |       |      | (31) |    |       |
|  7 | Debt valuation adjustment                                  | (556)                   |       |      | (1)  |    |       |
|  8 | Pension and postretirement liabilities                     | 16                      |       |      | 14   |    |       |
|  9 | Available-for-sale securities                              | 115                     |       |      | 427  |    |       |
| 10 | Other comprehensive income/(loss)                          | (399)                   |       |      | 409  |    |       |
| 11 | Comprehensive income                                       | $                       | 3,733 |      |      | $  | 3,643 |
The accompanying notes are an integral part of these consolidated financial statements.

|    |    |                                    |
|---:|---:|:-----------------------------------|
|  1 |  1 | Goldman Sachs March 2024 Form 10-Q |

GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-03-31, page 1:
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(Unaudited)

 	Three MonthsEnded March

in millions, except per share amounts	2024		2023

Revenues

Investment banking	$	2,085 			$	1,578

Investment management	2,491 			2,289

Commissions and fees	1,077 			1,088

Market making	5,992 			5,433

Other principal transactions	960 			55

Total non-interest revenues	12,605 			10,443

Interest income	19,555 			14,938

Interest expense	17,947 			13,157

Net interest income	1,608 			1,781

Total net revenues	14,213 			12,224

Provision for credit losses	318 			(171)

Operating expenses

Compensation and benefits	4,585 			4,090

Transaction based	1,497 			1,405

Market development	153 			172

Communications and technology	470 			466

Depreciation and amortization	627 			970

Occupancy	247 			265

Professional fees	384 			383

Other expenses	695 			651

Total operating expenses	8,658 			8,402

Pre-tax earnings	5,237 			3,993

Provision for taxes	1,105 			759

Net earnings	4,132 			3,234

Preferred stock dividends	201 			147

Net earnings applicable to common shareholders	$	3,931 			$	3,087

Earnings per common share

Basic	$	11.67 			$	8.87

Diluted	$	11.58 			$	8.79

Average common shares

Basic	335.6		346.6

Diluted	339.5		351.3

Consolidated Statements of Comprehensive Income

(Unaudited)

 	Three MonthsEnded March

$ in millions	2024		2023

Net earnings	$	4,132 			$	3,234

Other comprehensive income/(loss) adjustments, net of tax:

Currency translation	26 			(31)

Debt valuation adjustment	(556)			(1)

Pension and postretirement liabilities	16 			14

Available-for-sale securities	115 			427

Other comprehensive income/(loss)	(399)			409

Comprehensive income	$	3,733 			$	3,643

The accompanying notes are an integral part of these consolidated financial statements.

1		Goldman Sachs March 2024 Form 10-Q