Question 1 Partially (orrect Mark 1.00 out of 23.00 '7 Flag question Analyzing Inventory Levels and Write-downs Quarterly data for Nvidia Inc. for the most recent 10 quarters follows ($ millions). Cost of 2015 4 $9,349 $733 $794 $2,173 2017 1 8,940 703 821 1,937 2017 2 3.932 335 355 2.230 2017 3 9,339 967 357 2,636 2017 4 10.679 1,003 796 2.911 2013 1 10,337 1,023 797 3,207 2013 2 12,233 1,035 1,090 3,123 2013 3 12.974 1,119 1,417 3.131 2013 4 12,627 354 1,575 2,205 2019 1 13,320 791 1,426 2,220 On November 16, 2018, after Nvidia's third quarter (Q3) 201 8 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(Nv1dia's calendar runs a year ahead of the actual physical date) was up signicantly compared with the same time last year, but at in QB compared with 02. 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 injanuary 2018 and $1.09 Bin 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 buildeup. .3. Calculate the inventory as a percent of total assets. Note: Round percentage to one decimal place (for example, enter 6.7% for 6,6555%). Support. Fiscal Year Fiscal Quarter Inventories [Total Assets 2016 4 0% X 2017 1 0% X 2017 2 0% X 2017 3 0% X 2017 4 0% X 2018 1 0% X 2018 2 0% X 2018 3 0% X 2018 4 0% X 2019 1 0% X b. Is the "inventory build" referred to by ExtremeTech significant in commonisize terms? C. Determine the gross profit margin for each quarter. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). FiscalYear Fiscal Quarter Gross Profit Margin 2016 4 0% X 2017 1 0% X 2017 2 0% X 2017 3 0% X 2017 4 0% X 2018 1 0% X 2018 2 0% X 2018 3 0% X 2018 4 0% X 2019 1 0% X 0'. Did the margin slip a "tiny bit" in Q3 201 8? Yes in terms of dollar only 4b 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 4 0 % X 2017 0 % X 2017 2 0 % X 2017 W 0 % X 2017 4 0 % X 2018 1 0 % X 2018 2 0 % x 2018 3 0 % X 2018 4 0 % X 2019 1 0 % X d. Did the margin slip a "tiny bit" in Q3 2018? Had the company maintained the gross margin in Q2 2108 as in Q3 2108, operating income would have been about $ 0 x million higher
