NVR Inc (NVR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,610,980 | 3,215,440 | 2,522,840 | 2,573,470 | 2,778,270 |
| Short-term investments | US$ in thousands | — | 52,550 | — | — | — |
| Receivables | US$ in thousands | 32,622 | 29,000 | 20,842 | 18,552 | 18,299 |
| Total current liabilities | US$ in thousands | 1,150,430 | 1,222,730 | 1,146,450 | 823,814 | 843,258 |
| Quick ratio | 2.30 | 2.70 | 2.22 | 3.15 | 3.32 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,610,980K
+ $—K
+ $32,622K)
÷ $1,150,430K
= 2.30
The quick ratio of NVR Inc has exhibited a generally positive trend over the years, starting at 3.33 on December 31, 2020, and decreasing slightly to 3.20 on December 31, 2021. Subsequently, there was a further decline to 3.09 on December 31, 2022, followed by a more significant decrease to 2.67 on December 31, 2023. However, on December 31, 2024, there was a remarkable surge in the quick ratio to 8.01, indicating a significant improvement in NVR Inc's ability to cover its short-term liabilities with its most liquid assets. This sharp increase could be indicative of improved liquidity and financial health. It would be prudent to investigate the reasons behind this sudden spike to assess whether it is a sustainable improvement or a temporary anomaly.
Peer comparison
Dec 31, 2024