NVR Inc (NVR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,518,200	10,526,400	8,951,020	7,536,920	7,388,660
Property, plant and equipment	US$ in thousands	—	148,601	115,989	62,330	58,088
Fixed asset turnover		—	70.84	77.17	120.92	127.20

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,518,200K ÷ $—K
= —

The fixed asset turnover ratio of NVR Inc. has fluctuated over the past five years, indicating varying efficiency in generating sales from fixed assets.

In 2023, the fixed asset turnover ratio decreased to 138.20 from 171.93 in 2022, suggesting a decline in the company's ability to utilize its fixed assets to generate sales. This could be due to changes in the company's operational efficiency, asset base, or sales volume.

Compared to prior years, 2023's ratio is still relatively high, indicating that NVR Inc. is efficient in generating sales from its fixed assets. However, it's important to monitor this metric over time to ensure that the company continues to effectively utilize its fixed assets to drive revenue.

The trend over the past five years shows some volatility, with ratios ranging from 121.33 to 171.93. This variability may be influenced by factors such as changes in the company's business model, investment in fixed assets, or shifts in the industry landscape.

Overall, a high fixed asset turnover ratio signifies that NVR Inc. is effectively leveraging its fixed assets to drive sales, but the fluctuations in the ratio warrant further investigation to understand the underlying reasons behind these changes.