NVR Inc (NVR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a financial metric that indicates the average number of days it takes a company to collect revenue after a sale is made. A lower DSO value is generally more favorable as it suggests that the company is efficient in converting sales into cash.
Analyzing the DSO trend for NVR Inc. over the past five years, we observe a consistent decrease in DSO from 0.90 days in 2019 to 1.09 days in 2023. This trend indicates that NVR Inc. has been able to collect revenues more quickly, on average, over the years.
The improvement in DSO could be attributed to the company's effective credit and collection policies, better customer payment terms, and efficient accounts receivable management. A lower DSO reflects a more streamlined and effective cash collection process, which can positively impact the company's cash flow and liquidity position.
Overall, the decreasing trend in DSO for NVR Inc. from 2019 to 2023 signals efficient revenue collection practices, portraying a positive financial management aspect within the company.
Peer comparison
Dec 31, 2023