NVR Inc (NVR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.95% | 99.61% | 99.63% | 99.59% | 99.52% |
| Operating profit margin | 99.92% | 99.19% | 99.29% | 99.22% | 99.08% |
| Pretax margin | 20.10% | 20.26% | 21.41% | 17.77% | 14.30% |
| Net profit margin | 15.98% | 16.72% | 16.39% | 13.82% | 11.96% |
NVR Inc has shown consistently high profitability over the past five years, as indicated by its profitability ratios.
The Gross Profit Margin has been steadily increasing from 99.52% in 2020 to 99.95% in 2024, reflecting the company's ability to efficiently manage its production costs and generate a high margin on its sales.
The Operating Profit Margin has also shown an upward trend, rising from 99.08% in 2020 to 99.92% in 2024. This indicates that the company is effectively controlling its operating expenses while maintaining strong profitability.
The Pretax Margin has shown significant improvement over the years, increasing from 14.30% in 2020 to 20.10% in 2024. This indicates that NVR Inc has been able to boost its profitability before accounting for taxes through effective cost management and revenue generation.
Lastly, the Net Profit Margin has exhibited a generally increasing trend, reaching 16.72% in 2023 before slightly decreasing to 15.98% in 2024. This suggests that the company is efficient in managing its tax obligations and other expenses to generate profits for its shareholders.
Overall, NVR Inc's profitability ratios reflect a strong and well-managed financial performance, showcasing the company's ability to generate high margins and effectively control costs over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 164.80% | 143.01% | 184.62% | 152.22% | 129.26% |
| Return on assets (ROA) | 26.36% | 24.11% | 30.48% | 21.20% | 15.60% |
| Return on total capital | 50.91% | 44.82% | 65.38% | 54.74% | 36.06% |
| Return on equity (ROE) | 39.95% | 36.47% | 49.21% | 41.19% | 29.04% |
NVR Inc's profitability ratios reflect a positive trend over the years. The Operating return on assets (Operating ROA) has steadily increased from 129.26% in December 2020 to 164.80% in December 2024, indicating the company's ability to generate operating income relative to its total assets has grown significantly.
Return on assets (ROA) has also shown improvement, rising from 15.60% in December 2020 to 26.36% in December 2024. This ratio demonstrates the company's efficiency in utilizing its assets to generate profits for its shareholders.
Return on total capital has exhibited a similar upward trajectory, increasing from 36.06% in December 2020 to 50.91% in December 2024. This metric highlights the company's profitability relative to the total capital employed in its operations.
Return on equity (ROE) has followed a similar pattern of growth, climbing from 29.04% in December 2020 to 39.95% in December 2024. ROE reflects the company's ability to generate profit from the shareholders' equity invested in the business.
Overall, NVR Inc's profitability ratios indicate a strong performance and efficient utilization of its assets and capital to generate returns for its shareholders.