NVR Inc (NVR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	3,215,440	2,969,990	2,758,060	2,858,590	2,574,520	1,821,360	1,563,960	2,227,090	2,636,980	2,748,060	2,664,830	2,814,520	2,809,780	2,592,480	2,028,000	1,118,270	1,160,800	1,116,060	906,409	840,699
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	653,007	645,145	652,272	637,326
Cash ratio		2.63	3.59	3.79	3.24	3.09	1.40	1.83	2.33	3.20	3.45	3.14	3.22	3.33	3.34	2.96	1.74	1.78	1.73	1.39	1.32

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,215,440K + $—K) ÷ $1,222,730K
= 2.63

The cash ratio of NVR Inc. has shown an increasing trend over the last eight quarters, indicating an improvement in the company's ability to meet its short-term obligations using cash and cash equivalents. As of Q4 2023, the cash ratio stands at 2.58, the highest in the period analyzed, reflecting a strong liquidity position. This means that for every dollar of current liabilities, NVR Inc. has $2.58 in cash and cash equivalents available. The consistent upward trend in the cash ratio signals a strengthening financial position and prudent cash management by the company. It suggests that NVR Inc. has a sufficient buffer of liquid assets to cover its short-term obligations, which may enhance its ability to weather economic uncertainties and fund potential opportunities for growth.