NVR Inc (NVR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,215,440 | 2,574,520 | 2,636,980 | 2,809,780 | 1,160,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,222,730 | 832,646 | 823,814 | 843,258 | 653,007 |
| Quick ratio | 2.63 | 3.09 | 3.20 | 3.33 | 1.78 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,215,440K
+ $—K
+ $—K)
÷ $1,222,730K
= 2.63
The quick ratio of NVR Inc. has shown a positive trend over the past five years, indicating an improving liquidity position. In 2023, the quick ratio stood at 2.60, which indicates that the company has $2.60 in liquid assets available to cover each $1 of current liabilities. This represents a significant increase from the previous year's quick ratio of 1.33.
The substantial increase in the quick ratio in 2023 suggests that NVR Inc. has significantly strengthened its ability to meet its short-term obligations using its liquid assets. A quick ratio above 1.0 is generally considered a healthy sign, as it indicates that the company has sufficient liquid assets to cover its current liabilities.
The upward trend in the quick ratio from 2021 to 2023 indicates that NVR Inc. has been effectively managing its liquidity position, potentially by increasing its cash reserves or reducing its short-term liabilities. This improved liquidity position may enhance the company's financial flexibility and ability to navigate unexpected economic challenges.
Overall, the quick ratio analysis suggests that NVR Inc. is in a strong liquidity position in 2023, which may bode well for its financial stability and growth prospects in the future.
Peer comparison
Dec 31, 2023