NVR Inc (NVR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.02	0.02	0.02	0.02	0.00
DOH	days	19,021.53	16,786.83	19,569.67	17,224.35	117,085.92

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.02
= 19,021.53

To analyze NVR Inc.'s Days of Inventory on Hand (DOH) over the past five years, we observe fluctuations in this metric. In 2019, the company maintained inventory for an average of 84.06 days, indicating efficient inventory turnover. This trend continued into 2020 where the DOH remained relatively stable at 105.07 days.

However, in 2021, there was a slight increase in DOH to 105.10 days, suggesting a potential buildup in inventory levels or slower turnover. This trend reversed in 2022, with the DOH decreasing to 85.19 days, indicating a more efficient management of inventory.

The most recent data for 2023 shows an increase in DOH to 100.95 days, signaling a potential shift towards holding inventory for a longer period. It is important for NVR Inc. to monitor its inventory levels closely to strike a balance between meeting demand and avoiding excess inventory that could tie up capital.

Overall, the fluctuation in NVR Inc.'s Days of Inventory on Hand over the years highlights the importance of efficient inventory management practices to optimize working capital and profitability.