NVR Inc (NVR)

Current 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
Total current assets	US$ in thousands	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	1,160,800	3,052,720	2,795,480	2,574,610
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
Current ratio		4.25	6.45	7.20	5.75	5.64	3.34	5.04	4.97	5.95	6.18	5.89	5.73	3.33	6.08	5.80	4.82	1.78	4.73	4.29	4.04

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,194,590K ÷ $1,222,730K
= 4.25

NVR Inc.'s current ratio has been on an upward trend over the past eight quarters, indicating a strong ability to meet its short-term obligations. The current ratio increased from 1.62 in Q1 2022 to 4.16 in Q4 2023, reflecting a significant improvement in the company's liquidity position.

The current ratio exceeded 2 in every quarter, which is generally considered a healthy level, and the company's liquidity position has continued to strengthen over time. This suggests that NVR Inc. has ample current assets to cover its current liabilities, providing a cushion against any short-term financial challenges.

Overall, the consistent increase in the current ratio indicates that NVR Inc. is effectively managing its working capital and maintaining a strong financial position, which bodes well for its ability to navigate short-term financial fluctuations.