NVR Inc (NVR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.61% | 99.63% | 99.59% | 99.52% | 99.94% |
| Operating profit margin | 99.19% | 99.29% | 99.22% | 99.08% | 99.94% |
| Pretax margin | 20.26% | 21.41% | 17.77% | 14.30% | 13.88% |
| Net profit margin | 16.72% | 16.39% | 13.82% | 11.96% | 11.89% |
NVR Inc. has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has increased steadily from 21.22% in 2019 to 27.18% in 2023, indicating the company's ability to effectively manage its cost of goods sold.
Similarly, the operating profit margin has also seen an upward trend, rising from 14.10% in 2019 to 20.15% in 2023. This suggests that NVR Inc. has been successful in controlling its operating expenses and improving operational efficiency.
Moreover, the pretax margin has shown significant improvement, reaching 19.92% in 2023 compared to 13.81% in 2019. This indicates that the company has been able to effectively manage its tax obligations while generating higher pre-tax profits.
Furthermore, the net profit margin has also exhibited a positive trajectory, reaching 16.44% in 2023 compared to 11.83% in 2019. This indicates that NVR Inc. has been successful in maximizing its bottom line profitability, after accounting for all expenses including taxes.
Overall, the upward trend in NVR Inc.'s profitability ratios reflects the company's strong financial performance and efficient management of operations, leading to improved profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 143.01% | 184.62% | 152.22% | 129.26% | 193.83% |
| Return on assets (ROA) | 24.11% | 30.48% | 21.20% | 15.60% | 23.06% |
| Return on total capital | 44.82% | 65.38% | 54.74% | 36.06% | 44.90% |
| Return on equity (ROE) | 36.47% | 49.21% | 41.19% | 29.04% | 37.52% |
NVR Inc.'s profitability ratios show a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA) has been fluctuating but generally increasing from 27.49% in 2019 to 29.55% in 2023, indicating that the company's core operations are becoming more efficient at generating profits relative to its total assets.
2. Return on assets (ROA) has also shown improvement, ranging from 15.60% in 2020 to 24.11% in 2023. This suggests that NVR Inc. has been able to generate more profits from its assets over time.
3. Return on total capital has followed a similar trend, increasing from 23.36% in 2020 to 37.05% in 2023. This ratio reflects the company's ability to generate profits from both its debt and equity capital.
4. Return on equity (ROE) has shown a consistent upward trend, indicating that NVR Inc. has been effectively utilizing shareholders' equity to generate profits. The ROE has increased from 29.04% in 2020 to 36.47% in 2023.
Overall, NVR Inc.'s profitability ratios demonstrate a positive trajectory, indicating efficient management of assets, capital, and equity to generate increasing profits over the years.