NVR Inc (NVR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,518,200	10,526,400	8,951,020	7,536,920	7,388,660
Receivables	US$ in thousands	—	—	—	—	—
Receivables turnover		—	—	—	—	—

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,518,200K ÷ $—K
= —

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. The higher the ratio, the faster the company is collecting payments from its customers.

Analyzing the trend of NVR Inc.'s receivables turnover over the past five years, we observe fluctuations in the ratio:

1. In 2023, the receivables turnover ratio decreased to 333.89 from 507.40 in 2022. This could indicate that the company took longer to collect payments from its customers in 2023 compared to the previous year.

2. Prior to 2023, the ratio had shown an overall increasing trend from 2019 to 2022. This suggests that NVR Inc. was improving its accounts receivable collection efficiency over this period.

3. The significant drop in the ratio in 2023 compared to 2022 may warrant further investigation into the company's credit policies, collection procedures, or changes in customer payment behavior that could have impacted the collection process.

Overall, the trend in NVR Inc.'s receivables turnover indicates varying efficiency levels in collecting receivables over the past five years, with 2023 showing a notable decline in this aspect. Further analysis and comparison with industry benchmarks may help in understanding the reasons behind these fluctuations and identifying strategies for improvement.