NVR Inc (NVR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	9,404,220	7,043,330	7,232,430	7,555,010	7,757,300	7,756,700	7,378,540	7,004,490	6,668,620	6,676,220	6,271,280	5,608,310	5,149,070	7,179,910	7,099,290	7,295,560	7,416,400	7,369,490	7,281,370	7,231,300
Total assets	US$ in thousands	6,601,760	6,372,260	6,266,780	6,075,900	5,660,970	5,389,530	5,287,700	5,726,210	5,834,480	5,788,890	5,854,440	5,820,810	5,777,140	5,499,920	4,730,020	3,887,520	3,809,820	3,843,360	3,603,240	3,362,770
Operating ROA		142.45%	110.53%	115.41%	124.34%	137.03%	143.92%	139.54%	122.32%	114.30%	115.33%	107.12%	96.35%	89.13%	130.55%	150.09%	187.67%	194.67%	191.75%	202.08%	215.04%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $9,404,220K ÷ $6,601,760K
= 142.45%

The operating return on assets (operating ROA) of NVR Inc. has exhibited a declining trend over the past four quarters. The operating ROA decreased from 39.74% in Q4 2022 to 29.55% in Q4 2023, reflecting a significant drop in profitability. This downward trend continued in subsequent quarters, reaching a low of 29.55% in Q4 2023.

While the operating ROA fluctuated slightly in the intervening quarters, the overall trajectory has been one of decreasing profitability. It is worth noting that NVR Inc. started the period with a relatively high operating ROA of 39.74% in Q4 2022, which decreased steadily over the subsequent quarters.

This declining trend in operating ROA suggests that NVR Inc. may be facing challenges in generating profits from its assets through operations. Further analysis of the company's financial performance and operational efficiency may be warranted to understand the underlying factors contributing to this trend.