NVR Inc (NVR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick 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 |
| 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 |
Based on the liquidity ratios of NVR Inc., we can observe the following trends:
1. Current Ratio:
- The current ratio has been fluctuating over the quarters, ranging from 1.62 to 4.16.
- The ratio has shown an increasing trend, which indicates that NVR Inc. has improved its ability to cover its short-term liabilities with its current assets.
2. Quick Ratio:
- The quick ratio has also been variable over the quarters, with values ranging from 0.84 to 2.60.
- Similar to the current ratio, the quick ratio has shown an increasing trend, suggesting a strengthening ability to meet short-term obligations without relying on inventory.
3. Cash Ratio:
- The cash ratio has exhibited fluctuations over the quarters, with values ranging from 0.82 to 2.58.
- Like the current and quick ratios, the cash ratio has shown improvement, indicating that NVR Inc. has enhanced its ability to cover its short-term liabilities solely with its cash and cash equivalents.
Overall, the increasing trends in the current, quick, and cash ratios suggest that NVR Inc. has been effectively managing its liquidity position and has a stronger ability to meet its short-term obligations across the quarters. This indicates a healthy liquidity position for the company.
Additional liquidity measure
| 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 conversion cycle | days | 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 | 117,085.92 | 18,621.45 | 11,604.30 | 8,635.61 |
The cash conversion cycle for NVR Inc. has varied over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 96.76 days, which decreased to 69.99 days by Q4 2022. However, in the subsequent quarters of 2023, the cash conversion cycle increased to 73.28 days in Q1 2023, followed by a gradual increase to 81.75 days in Q2 2023 and further to 83.55 days in Q3 2023. In the most recent quarter, Q4 2023, the cash conversion cycle increased to 84.04 days.
Overall, NVR Inc.'s cash conversion cycle has shown fluctuations over the past eight quarters, indicating changes in the company's efficiency in converting its investments in inventory and accounts receivable into cash. The increasing trend in the cash conversion cycle since Q4 2022 suggests a potential slowdown in the company's ability to generate cash from its operations. Further analysis of the components comprising the cash conversion cycle, such as inventory turnover and accounts receivable turnover, may provide insights into the specific factors driving these changes.