Nvidia Cash Flow Statement Review

Often the most overlooked financial statement, the cash flow statement is essential in helping you determining the current sources of capital, uses of capital, and how cash flow a business is returning from the net income amount. In my documented process for this financial research project, I am not considering any

When reviewing a cash flow statement, I prefer to review and analyze on a 12 month basis due to the roll forward effect of the financial statements. With that said, in assessing the cash flow statement of Nvidia (NVDA), here are my top three items:

- Operating Cash flow has been growing faster than net income being driven by the continuous focus on improving Accounts Receivable DSO (Daily Sales Outstanding)

- This increase in Operating Cash Flow has helped keep any debt off the balance sheet in connection with paying for any acquisitions that have been completed.

- Healthy Free Cash Flow with a yield of ~7.4% for 2008, coming in at +350 basis points higher than the 10-year Treasury note.

Here are the financial statement exhibits that I used in preparing this analysis. Look at for the remaining components to this series post.

Author Disclosure: I am neither long nor short in any positions that have been mentioned above.