NVR Inc (NVR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,215,440 | 2,969,990 | 2,758,060 | 2,858,590 | 2,574,520 | 1,821,360 | 1,563,960 | 2,227,090 | 2,636,980 | 2,748,060 | 2,664,830 | 2,814,520 | 2,809,780 | 2,592,480 | 2,028,000 | 1,118,270 | 1,160,800 | 1,116,060 | 906,409 | 840,699 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
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 measures the ability of a company to meet its short-term obligations with its most liquid assets. A quick ratio higher than 1 indicates that a company has more than enough liquid assets to cover its current liabilities.
Looking at the quick ratio of NVR Inc. over the past eight quarters, we can see a positive trend of improvement. The quick ratio has steadily increased from 0.85 in Q1 2022 to 2.60 in Q4 2023, indicating a significant strengthening of the company's liquidity position.
This improvement suggests that NVR Inc. is in a strong financial position to meet its short-term obligations without relying heavily on liquidating inventory or other less liquid assets. It may also indicate efficient management of working capital and a healthy balance between current assets and liabilities.
Overall, the increasing trend in the quick ratio for NVR Inc. reflects positively on the company's financial health and liquidity position, indicating a strong ability to cover its short-term obligations.
Peer comparison
Dec 31, 2023