NVR Inc (NVR)

Days of inventory on hand (DOH)

		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
DOH	days	148,006.53	19,021.53	16,786.83	19,569.67	17,224.35

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.00
= 148,006.53

NVR Inc's Days of Inventory on Hand (DOH) has shown fluctuating trends over the years based on the provided data. As of December 31, 2020, the company had an average of 17,224.35 days of inventory on hand, representing the number of days it takes for the company to sell its inventory. This ratio increased to 19,569.67 days as of December 31, 2021, indicating a potential slowdown in inventory turnover.

However, there was a notable improvement by December 31, 2022, with the DOH decreasing to 16,786.83 days, suggesting better management of inventory levels. The trend reversed in December 31, 2023, as the DOH increased again to 19,021.53 days, pointing towards a possible accumulation of excess inventory.

The most significant anomaly occurred on December 31, 2024, with a considerable spike to 148,006.53 days of inventory on hand. This extreme value raises concerns about potential errors in data recording or significant issues affecting the company's inventory management practices.

Overall, it is essential for NVR Inc to analyze the reasons behind these fluctuations in DOH to optimize its inventory management processes, reduce carrying costs, and improve operational efficiency.