NVR Inc (NVR)

Working capital 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
Revenue (ttm)	US$ in thousands	10,524,480	10,111,440	9,947,510	9,673,380	9,518,200	9,797,810	10,005,690	10,326,300	10,526,430	10,044,590	9,663,330	9,287,990	8,951,030	9,064,710	8,659,080	7,995,850	7,536,930	7,183,110	7,104,360	7,284,180
Total current assets	US$ in thousands	5,837,880	5,909,300	4,808,860	5,038,790	5,194,590	5,333,440	5,243,660	5,066,690	4,700,190	4,336,020	4,307,080	4,756,660	4,904,830	4,921,360	5,007,090	5,000,880	2,809,780	4,717,780	3,976,270	3,091,660
Total current liabilities	US$ in thousands	1,150,430	1,202,090	1,260,030	1,185,130	1,222,730	826,935	727,788	881,445	832,646	1,299,270	853,818	957,705	823,814	796,206	850,016	873,065	843,258	776,075	685,867	641,355
Working capital turnover		2.25	2.15	2.80	2.51	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,524,480K ÷ ($5,837,880K – $1,150,430K)
= 2.25

The working capital turnover of NVR Inc has fluctuated over the years, indicating variations in the efficiency of the company's management of its working capital. The ratios range from a low of 1.82 in September 2020 to a high of 3.83 in December 2020, showing significant variability in how effectively the company is using its working capital to generate sales revenue. Generally, a higher working capital turnover ratio is considered better as it signifies that the company is efficiently utilizing its current assets to support operations and generate revenue. NVR Inc's working capital turnover has shown a mix of improvements and declines over the periods, with the ratio trending upwards towards the end of the data series. This suggests potential enhancements in the company's working capital management, which could positively impact its financial performance in terms of liquidity and operational efficiency.