The company’s accelerated revenue growth along with improving operating efficiency is bringing in higher cash flows.
NVIDIA boasts a sturdy cash-flow generating ability. Since it has net cash available on its balance sheet, the existing cash can be used for pursuing strategic acquisitions, investment in growth initiatives and distribution to shareholders. As of Jan 31, 2021, the company had cash and cash equivalents of nearly $11.56 billion, which is significantly higher than its total debt of $5.96 billion.
Notably, it is a cash-rich company with a strong balance sheet. NVIDIA’s efforts to boost shareholder value are noteworthy. Notably, the company’s shares have returned a massive 1227.5% in the past five years, strongly outperforming the industry’s five-year growth of 270.3%. This, in turn, should push share prices up again. The motive behind the stock split is to make the company’s stock more affordable to employees and retail investors, thus boosting demand for NVIDIA’s shares. NVIDIA’s shares are expected to start trading on a stock split-adjusted basis from Jul 20. These dividend shares will be distributed after the market closes on Jul 19.
If approved, each NVIDIA shareholder will receive three additional shares for every share held as of Jun 21. The process of stockholder approval for the stock dividend will be held virtually on Jun 3, at the company’s 2021 Annual Meeting of Stockholders. NVIDIA ( NVDA Quick Quote NVDA - Free Report) recently declared a four-for-one common stock split in the form of a stock dividend, increasing the number of authorized shares of common stock to 4 billion.
0 kommentar(er)
