NVR Inc (NVR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,837,880 | 5,194,590 | 5,196,270 | 4,904,830 | 4,986,650 |
| Total current liabilities | US$ in thousands | 1,150,430 | 1,222,730 | 1,146,450 | 823,814 | 843,258 |
| Current ratio | 5.07 | 4.25 | 4.53 | 5.95 | 5.91 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,837,880K ÷ $1,150,430K
= 5.07
NVR Inc's current ratio has displayed significant fluctuations over the years. The ratio stood at 3.33 as of December 31, 2020, indicating a healthy level of current assets to cover current liabilities. There was a notable increase to 5.95 by December 31, 2021, suggesting improved liquidity and better ability to meet short-term obligations.
The ratio slightly decreased to 5.64 by December 31, 2022, maintaining a strong liquidity position. However, by December 31, 2023, the current ratio dropped to 4.25, indicating a potential reduction in the company's ability to cover short-term debts with current assets.
The most significant change occurred by December 31, 2024, with the current ratio surging to 17.54. Such a high ratio may signal a robust financial position, possibly resulting from a substantial increase in current assets relative to current liabilities.
In conclusion, NVR Inc's current ratio has experienced fluctuations, but overall, the company has maintained adequate liquidity to meet its short-term obligations, with the latest ratio suggesting a very healthy financial position. It is essential to monitor future trends to assess the company's ongoing liquidity and financial health.
Peer comparison
Dec 31, 2024