NVR Inc (NVR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,681,930 | 1,591,610 | 1,725,580 | 1,236,720 | 901,248 |
| Total assets | US$ in thousands | 6,380,990 | 6,601,760 | 5,660,970 | 5,834,480 | 5,777,140 |
| ROA | 26.36% | 24.11% | 30.48% | 21.20% | 15.60% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,681,930K ÷ $6,380,990K
= 26.36%
The return on assets (ROA) for NVR Inc has been on an upward trend over the past five years, indicating improved asset utilization and profitability. The ROA increased from 15.60% as of December 31, 2020, to 26.36% as of December 31, 2024. This suggests that the company has been effectively generating profit relative to its total assets during the period under review.
The significant fluctuations in ROA from 2020 to 2024 may indicate changes in the company's efficiency in generating earnings from its assets. The peak ROA of 30.48% in 2022 reflects a period of particularly strong asset utilization and profitability.
Overall, the increasing trend in ROA reflects positively on NVR Inc's ability to generate profit relative to its asset base, which is essential for sustaining long-term financial health and creating value for shareholders. It is important for investors and stakeholders to monitor this metric to assess the company's operational efficiency and profitability going forward.
Peer comparison
Dec 31, 2024