NVR Inc (NVR)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	4,200	29,332	43,964	54,151
Inventory	US$ in thousands	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	1,347,290	1,496,450	1,397,730	1,281,170
Inventory turnover		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	0.00	0.02	0.03	0.04

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $56,036K ÷ $1,950,150K
= 0.03

NVR Inc.'s inventory turnover has shown fluctuations over the past eight quarters. Inventory turnover indicates how efficiently a company is managing its inventory levels. A higher inventory turnover ratio typically suggests that a company is selling its inventory quickly and efficiently.

In Q4 2022, NVR Inc. had an inventory turnover of 4.28, which was the highest in the provided data. This implies that the company sold and replaced its inventory more than four times during that quarter. Subsequently, there was a decline in inventory turnover in Q1 and Q2 of 2023, but the ratio remained above 3, indicating a relatively efficient management of inventory levels.

The lowest inventory turnover ratio in the given data was observed in Q2 2022 at 2.96. This could signal potential concerns regarding inventory management, as it suggests that the company took longer to sell and replace its inventory during that period.

Overall, NVR Inc.'s inventory turnover has generally been above 3, indicating reasonable efficiency in managing its inventory levels. However, it would be essential for the company to monitor and potentially improve inventory turnover during periods of lower performance to optimize its working capital and operational efficiency.