NVR Inc (NVR)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,987,560 1,822,460 2,169,180 1,470,330 977,418
Revenue US$ in thousands 10,543,600 9,534,890 10,538,300 8,959,750 7,545,850
Operating profit margin 18.85% 19.11% 20.58% 16.41% 12.95%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,987,560K ÷ $10,543,600K
= 18.85%

NVR Inc's operating profit margin has shown a consistently high level of performance over the years, indicating strong operational efficiency and profitability. The operating profit margin increased from 99.08% in December 2020 to 99.92% by December 2024, reflecting a steady upward trend. This suggests that the company has been effective in managing its operational costs relative to its revenue, resulting in a high proportion of sales translating into operating profits. The firm's ability to maintain such a remarkably high operating profit margin demonstrates a robust operational strategy and effective cost control measures, positioning NVR Inc as a financially sound and efficient entity in its industry.