NVR Inc (NVR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148,035.69 | 21,569.40 | 21,708.49 | 16,456.17 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 148,035.69 | 21,569.40 | 21,708.49 | 16,456.17 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148,035.69 + — – —
= 148,035.69
The cash conversion cycle of NVR Inc has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024.
The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, started at a relatively high level of 114,845.05 days in March 2020. It then increased significantly to 174,218.83 days by September 2020, indicating potential inefficiencies in managing the company's working capital.
Subsequently, there was a notable decrease in the cash conversion cycle to 17,224.35 days by December 2020, implying a more efficient management of resources. However, this was followed by a slight increase in the cycle in the first quarter of 2021.
Throughout the following quarters, the cash conversion cycle remained relatively stable within a range of around 18,000 to 31,000 days, apart from a notable spike to 34,583.70 days in September 2023. This spike may indicate challenges in inventory management or delays in the collection of receivables.
By December 31, 2024, the cash conversion cycle rose significantly to 148,035.69 days, signifying a considerable lengthening of the time it takes for NVR Inc to convert its investments into cash flows. This could potentially indicate inefficiencies or challenges in managing working capital effectively.
Overall, the trend of the cash conversion cycle for NVR Inc shows periods of stability interspersed with notable fluctuations, suggesting potential areas for improvement in the company's working capital management practices.
Peer comparison
Dec 31, 2024