NVR Inc (NVR)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	10,524,480	10,111,440	9,947,510	9,673,380	9,518,200	9,797,810	10,005,690	10,326,300	10,526,430	10,044,590	9,663,330	9,287,990	8,951,030	9,064,710	8,659,080	7,995,850	7,536,930	7,183,110	7,104,360	7,284,180
Property, plant and equipment	US$ in thousands	—	—	—	—	—	161,878	158,698	153,187	148,601	59,232	125,720	60,215	115,989	115,858	116,119	60,180	62,330	63,466	55,717	56,484
Fixed asset turnover		—	—	—	—	—	60.53	63.05	67.41	70.84	169.58	76.86	154.25	77.17	78.24	74.57	132.87	120.92	113.18	127.51	128.96

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,524,480K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better asset utilization.

Analyzing NVR Inc's fixed asset turnover over the past few years, we observe a fluctuating pattern. The ratio was relatively high in the first half of 2020, ranging from 113.18 to 132.87, indicating efficient utilization of fixed assets during that period.

However, in the latter part of 2021 and throughout 2022, the fixed asset turnover ratio decreased significantly, dropping to as low as 63.05 in June 2023. This suggests a potential decrease in the effectiveness of utilizing fixed assets to generate revenue during this period.

The ratio saw a sharp increase to 169.58 in September 2022, indicating a sudden improvement in asset utilization. However, it dropped again to 70.84 in December 2022, showing inconsistency in asset turnover efficiency.

In the most recent period, the fixed asset turnover ratio decreased to 60.53 in September 2023, indicating a potential issue with efficiently utilizing fixed assets to generate revenue.

It is important for NVR Inc to monitor its fixed asset turnover ratio consistently to ensure optimal use of fixed assets and improve operational efficiency in the long term.