NVR Inc (NVR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	5,076	38,200	37,737	46,956	56,036	21,148	30,539	29,555	28,478	28,778	27,227	26,581	26,036	36,537	36,193	36,060	36,217	3,694	4,632	4,817
Inventory	US$ in thousands	2,058,710	2,257,400	2,244,420	2,117,030	1,950,150	2,003,770	2,020,090	1,865,540	1,788,280	2,170,450	2,378,740	2,193,640	1,947,370	1,863,520	1,973,370	1,829,790	1,709,080	1,763,190	1,602,540	1,515,640
Inventory turnover		0.00	0.02	0.02	0.02	0.03	0.01	0.02	0.02	0.02	0.01	0.01	0.01	0.01	0.02	0.02	0.02	0.02	0.00	0.00	0.00

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,076K ÷ $2,058,710K
= 0.00

The inventory turnover ratio for NVR Inc shows a consistent pattern over the years, indicating that the company is effectively managing its inventory levels. The ratio remained at 0.00 for the first three quarters of 2020, which could suggest potential issues with inventory management during that period.

However, from the fourth quarter of 2020 onwards, the inventory turnover ratio started to increase gradually, reaching 0.03 by the end of December 2023. This improvement signifies that NVR Inc is selling its inventory more efficiently and is able to turn over its stock multiple times within a year.

Overall, the trend in the inventory turnover ratio indicates that NVR Inc has been making progress in managing its inventory effectively and converting it into sales. A higher inventory turnover ratio generally suggests that the company is efficiently utilizing its resources and is well-positioned to meet customer demand while minimizing excess inventory carrying costs. It is important to continue monitoring this ratio to ensure sustained efficiency in inventory management.