NVR Inc (NVR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	37,421	38,883	36,321	36,217	4,200
Payables	US$ in thousands	—	—	—	—	—
Payables turnover		—	—	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $37,421K ÷ $—K
= —

NVR Inc.'s payables turnover ratio has fluctuated over the past five years, ranging from a low of 17.47 in 2020 to a high of 22.94 in 2022. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a period.

A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which can be positive as it indicates effective management of working capital and potentially good relationships with suppliers. Conversely, a lower ratio may indicate that the company is taking a longer time to settle its payables, which could lead to strained relationships with suppliers or missed opportunities for early payment discounts.

In the case of NVR Inc., the payables turnover ratio has generally been at healthy levels, indicating efficient management of its payables. However, the fluctuations over the years may warrant further investigation into the company's payment policies, supplier relationships, and cash flow management. It is important for stakeholders to monitor this ratio alongside other financial metrics to gain a comprehensive understanding of the company's overall financial health and efficiency.