Motley Fool Stock Advisor
pick NVIDIA
- Oh my, that's an impressive revenue boost, particularly since practically all of that growth was organic. Some of the net income growth is illusory, however, since NVIDIA took a full year's worth of R&D tax credits in this quarter. That isn't likely to happen again.
- The acquisition of PortalPlayer, which used to make the chips that power Apple
(NASDAQ:AAPL) iPods, closed in early January. That operation contributed $1 million of revenues and $5 million of operating expenses, as well as a $13.4 million writeoff charge for in-process R&D. - Owner earnings, a.k.a. structural free cash flow, is the fastest-growing metric on this summary sheet, and is now greater than net income and simple free cash flow.
- Inventory levels did shrink a little bit sequentially, and ended up growing about as fast as sales year over year.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$878.9 |
$633.6 |
38.7% |
|
Net Profit |
$163.5 |
$97.4 |
67.9% |
|
EPS |
$0.41 |
$0.26 |
57.7% |
|
Diluted Shares |
399.0 |
371.9 |
7.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
43.9% |
40.1% |
3.8 |
|
Operating Margin |
15.8% |
17.5% |
(1.7) |
|
Net Margin |
18.6% |
15.4% |
3.2 |
Margins are the earnings engine. See how they work.
Management Effectiveness
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Return On Assets |
25.1% |
20.7% |
4.4 |
|
Return On Equity |
34.0% |
27.4% |
6.6 |
See how management puts its financial tools to work.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,117.9 |
$950.2 |
17.6% |
|
Accounts Rec. |
$518.7 |
$318.2 |
63.0% |
|
Inventory |
$354.7 |
$254.9 |
39.2% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$272.1 |
$179.4 |
51.7% |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
> $143.0 |
$225.4 |
(36.6%) |
|
Capital Expenditures |
$37.0 |
$23.4 |
57.8% |
|
Free Cash Flow |
> $106.0 |
$201.9 |
(47.5%) |
|
$175.3 |
$96.9 |
81.0% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
66.4 |
64.0 |
2.4 |
|
Days in Receivables |
49.0 |
47.6 |
1.5 |
|
Days Payables Outstanding |
54.4 |
42.6 |
11.8 |
|
Cash Conversion Cycle |
61.1 |
69.0 |
(7.9) |
Read up on cash conversion metrics.
Related Companies:
-
AMD
(NYSE:AMD) -
Intel
(NASDAQ:INTC) -
Texas Intruments
(NYSE:TXN) -
Marvell
(NASDAQ:MRVL)
Related Foolishness:
- Tech's Fat Elvis
- Foolish Forecast: Is NVIDIA Eating Its Fiber?
- The Best Tech Stock for 2007: AMD
- What Makes the PlayStation 3 Tick?
- Foolish Fundamentals: Inventory
NVIDIA is a Stock Advisor recommendation, and Intel a Motley Fool Inside Value pick. Try out these or any of our other Foolish newsletters for yourself, free for 30 days.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund was an AMD shareholder but had no other position in any company mentioned. Fool rules are here.
