NVR Inc (NVR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.00 | 0.02 | 0.02 | 0.02 | 0.02 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.91 | 2.40 | 2.72 | 2.19 | 3.83 |
The Inventory turnover ratio for NVR Inc remained constant at 0.02 from December 31, 2020, to December 31, 2024, indicating that the company is managing its inventory efficiently, as it takes 50 days to sell the entire inventory on average each year.
The Receivables turnover ratio was not provided for the years examined, suggesting that specific data on the efficiency of the company in collecting its receivables is not available.
The Payables turnover ratio was also not provided for the years analyzed, implying that information regarding how quickly the company pays its suppliers is not available.
The Working capital turnover ratio for NVR Inc decreased from 3.83 on December 31, 2020, to 1.91 on December 31, 2024. This decrease suggests that the company's revenue generated per dollar of working capital invested has declined over the years, indicating a decrease in efficiency or possibly a change in the operating structure of the business.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148,006.53 | 19,021.53 | 16,786.83 | 19,569.67 | 17,224.35 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
NVR Inc's activity ratios provide insight into how efficiently the company manages its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- In December 2020, NVR had 17,224.35 days worth of inventory on hand, indicating that it took a substantial amount of time to turn over its inventory.
- By December 2024, this ratio increased significantly to 148,006.53 days, raising concerns about potential inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which is typically used to assess how long it takes for the company to collect on its sales.
3. Number of Days of Payables:
- There is no data available for the Number of Days of Payables, which would have shown how quickly the company pays its suppliers.
Overall, the increasing trend in the Days of Inventory on Hand raises questions about NVR Inc's ability to efficiently manage its inventory levels. The absence of data on DSO and Payables limits a comprehensive analysis of the company's working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 70.84 | 77.17 | 120.92 |
| Total asset turnover | 1.65 | 1.44 | 1.86 | 1.53 | 1.30 |
NVR Inc's fixed asset turnover has shown a decrease over the years, from 120.92 in 2020 to 70.84 in 2022. This indicates that the company is generating fewer sales relative to its investment in fixed assets. However, it seems that there is missing data for the years 2023 and 2024, which makes it difficult to assess the trend accurately.
On the other hand, the total asset turnover of NVR Inc has fluctuated over the years, with an increase from 1.30 in 2020 to 1.86 in 2022, and then a decrease to 1.44 in 2023. The ratio rebounded to 1.65 in 2024. This suggests that the company is effectively utilizing its total assets to generate sales. The improvement in 2022 could indicate better efficiency in asset utilization, although the decrease in 2023 and subsequent increase in 2024 raises some concerns about stability in this aspect.
Overall, the analysis of NVR Inc's long-term activity ratios shows mixed results, with trends pointing to both efficiency and potential areas for improvement in asset utilization. Further data for the missing years would provide a more comprehensive understanding of the company's long-term performance in this regard.