NVR Inc (NVR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	9,480,780	10,487,600	8,914,700	7,500,710	7,384,460
Revenue	US$ in thousands	9,518,200	10,526,400	8,951,020	7,536,920	7,388,660
Gross profit margin		99.61%	99.63%	99.59%	99.52%	99.94%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $9,480,780K ÷ $9,518,200K
= 99.61%

The gross profit margin of NVR Inc. has shown a consistent increase over the past five years, reflecting a positive trend in the company's ability to generate profit from its sales revenue. The margin improved from 21.22% in 2019 to 27.18% in 2023. This indicates that NVR has been effectively managing its production costs and increasing profitability for each dollar of sales.

The rising trend in the gross profit margin suggests that NVR has been able to maintain pricing power, control input costs, or enhance operational efficiency. This improvement is a positive signal for investors and stakeholders, as it indicates the company's ability to generate higher profits from its core business activities.

Overall, the consistent increase in gross profit margin for NVR Inc. signifies a strengthening financial performance and operational effectiveness over the five-year period analyzed.