Analyzing Inventory Levels and Write-downs Quarterly data for Nvidia Inc. for the most recent 10 quarters follows ($ millions). Cost of Fiscal Year Fiscal Quarter Total Assets Goods Sold Inventories Revenue 2016 4 $9,349 $783 $794 $2,173 2017 1 8,940 703 821 1,937 2017 2 8.932 8351 855 2,230 2017 3 9,339 967 857 2,636 2017 4 10,679 1,003 796 2,911 2018 1 10,887 1,028 797 3.207 2018 2 12.238 1,035 1,090 3.123 2018 3 12,974 1,119 1,417 3,181 2018 2019 4 1 12.627 13.320 854 791 1,575 2205 1,426 2,220 On November 16, 2018, after Nvidia's third quarter (Q3) 2018 earnings release, ExtremeTech reported: Nvidia stocks plummeted on Friday after the company released its earnings report. The company has, as of this writing, lost about 16 percent of its previous valuation. But what happens to a company after it reports earnings doesn't always make sense from a technical perspective. Nvidia's stock has taken a hammering today for basically having a weak Q3. Revenue in Nvidia's fiscal year Q3 2019 (Nvidia's calendar runs a year ahead of the actual physical date) was up significantly compared with the same time last year, but flat in Q3 compared with Q2. Nvidia's margin slipped a tiny bit but it's the company's inventory build that has analysts worried. Nvidia is currently holding $1.417 B in product, up from $796 M in January 2018 and $1.09 B in Q2 2018. Nvidia blames this problem entirely on the decline of the cryptography market and has stated it will ship no new midrange cards to market through Q4 to give the channel time to work through the excess inventory build-up. a. Calculate the inventory as a percent of total assets. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Fiscal Year Fiscal Quarter Inventories/Total Assets 2016 8.5% 2017 9.2% 2017 2 9.6% 2017 9.2% 2017 4 7.5% 2018 1 7.3% 2018 2 8.9% 2018 10.9% 2018 2019 1 12.5% 10.7% b. Is the "inventory build" referred to by ExtremeTech significant in common-size terms? Yes in terms of both dollars and percentages c. Determine the gross profit margin for each quarter. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Fiscal Year Fiscal Quarter Gross Profit Margin 2016 72.6% x 2017 1% x 2017 2 1% * 2017 1% x 2017 4 2018 1 1% * 2018 2 1% x 2018 3 1% x 2018 4 1% x 2019 1 1% *