NVR Inc (NVR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,441,460 | 10,451,200 | 8,880,980 | 7,467,690 | 7,384,460 |
| Total assets | US$ in thousands | 6,601,760 | 5,660,970 | 5,834,480 | 5,777,140 | 3,809,820 |
| Operating ROA | 143.01% | 184.62% | 152.22% | 129.26% | 193.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $9,441,460K ÷ $6,601,760K
= 143.01%
NVR Inc.'s operating return on assets (ROA) has fluctuated over the past five years, ranging from 18.63% in 2020 to 39.74% in 2022. In 2023, the operating ROA decreased to 29.55%. This indicates that for each dollar of assets the company owns, it generated 29.55 cents in operating income in 2023.
The upward trend from 2020 to 2022 suggests an improvement in the company's operational efficiency and profitability. However, the decrease in 2023 raises some concerns about the company's ability to sustain and possibly improve its operational performance in the future.
Overall, while NVR Inc. has demonstrated strong operating ROA figures historically, it is essential for investors and stakeholders to monitor the company's financial performance closely to understand the underlying reasons for the fluctuations and assess the company's future prospects.
Peer comparison
Dec 31, 2023