NVR Inc (NVR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.40 | 2.17 | 2.22 | 2.47 | 2.72 | 3.31 | 2.80 | 2.44 | 2.19 | 2.20 | 2.08 | 1.94 | 3.83 | 1.82 | 2.16 | 2.97 | 14.55 | 3.07 | 3.42 | 3.78 |
The activity ratios of NVR Inc. provide insights into how efficiently the company is managing its resources and operations.
1. Inventory turnover: NVR Inc. has maintained a relatively stable inventory turnover ratio over the past quarters, ranging from 3.61 to 4.28. This indicates that the company is effectively managing its inventory levels and turning inventory into sales. A higher ratio suggests faster inventory turnover and efficient inventory management.
2. Receivables turnover: NVR Inc. shows significant fluctuations in its receivables turnover ratio, with values ranging from 290.75 to 507.40. A high receivables turnover ratio indicates that the company is collecting its receivables quickly, which is a positive sign for cash flow management.
3. Payables turnover: The payables turnover ratio of NVR Inc. has been relatively stable, ranging from 16.85 to 22.94. A higher payables turnover ratio indicates that the company is efficiently managing its payments to suppliers, which can have cash flow benefits.
4. Working capital turnover: NVR Inc. has maintained a consistent working capital turnover ratio, ranging from 2.36 to 5.09. This ratio measures how effectively the company is utilizing its working capital to generate sales. A higher ratio suggests that the company is efficiently using its working capital to support its operations.
Overall, NVR Inc. appears to be effectively managing its inventory, receivables, payables, and working capital to support its business operations and financial performance. The company's ability to maintain stable or improving activity ratios indicates efficient use of resources and effective management of its working capital cycle.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 12,702.63 | 34,583.70 | 24,143.97 | 23,039.15 | 22,920.23 | 27,528.47 | 31,888.94 | 30,122.22 | 27,300.28 | 18,616.33 | 19,901.09 | 18,521.17 | 17,224.35 | 174,218.83 | 126,279.60 | 114,845.05 | 117,085.92 | 18,621.45 | 11,604.30 | 8,635.61 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of inventory on hand (DOH) measures how many days, on average, inventory is held by the company before being sold. NVR Inc.'s inventory turnover has improved over the quarters in 2023 compared to the same quarters in 2022, indicating an efficient management of inventory levels. However, the company's inventory holding period was somewhat higher in Q4 2023 compared to Q3 2023.
Days of sales outstanding (DSO) reflects how long it takes for the company to collect payment after a sale. NVR Inc. has maintained a low DSO throughout 2023, indicating a prompt collection of receivables, with slight increases seen in Q3 and Q4 compared to Q1 and Q2.
Number of days of payables shows how long it takes for the company to pay its creditors. NVR Inc.'s payables period has remained relatively stable throughout 2023, with a slight increase in Q4 compared to Q1, Q2, and Q3.
In summary, NVR Inc. has shown efficiency in managing its inventory turnover and collecting receivables promptly. The company has also maintained a consistent payment period to its creditors throughout the quarters in 2023.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 127.20 | 130.80 | 134.52 | 147.78 |
| Total asset turnover | 1.44 | 1.54 | 1.60 | 1.70 | 1.86 | 1.86 | 1.83 | 1.62 | 1.53 | 1.57 | 1.48 | 1.37 | 1.30 | 1.31 | 1.50 | 1.87 | 1.94 | 1.92 | 2.04 | 2.18 |
NVR Inc.'s long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover: The fixed asset turnover ratio measures how effectively the company is generating sales revenue from its fixed assets. NVR Inc.'s fixed asset turnover has been consistently high, ranging from 138.20 in Q4 2023 to 173.28 in Q1 2023. This indicates that the company is efficiently utilizing its fixed assets to generate sales. The increasing trend in the fixed asset turnover ratio over the quarters suggests improving efficiency in generating sales from fixed assets.
2. Total Asset Turnover: The total asset turnover ratio indicates how well the company is using all its assets to generate sales. NVR Inc.'s total asset turnover ratio has shown some fluctuation but generally trending downwards from 1.87 in Q4 2022 to 1.47 in Q4 2023. A decreasing total asset turnover ratio may suggest a decrease in efficiency in generating sales from all assets. However, it is essential to note that the total asset turnover ratio is influenced by various factors such as changes in asset composition or sales volume.
In summary, NVR Inc. demonstrates high efficiency in utilizing its fixed assets to generate sales, as evidenced by the consistently high fixed asset turnover ratios. However, the slight decline in the total asset turnover ratio indicates a potential decrease in efficiency in utilizing all assets to generate sales. This analysis highlights the company's focus on optimizing the use of fixed assets, but also raises the importance of monitoring the overall asset efficiency to maximize sales generation.