NVR Inc (NVR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,210,070 | 4,364,720 | 3,506,850 | 3,002,380 | 3,103,070 |
| ROE | 39.95% | 36.47% | 49.21% | 41.19% | 29.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,681,930K ÷ $4,210,070K
= 39.95%
Based on the provided data, NVR Inc's return on equity (ROE) has demonstrated a positive trend over the years, indicating the company's ability to generate strong returns for its shareholders.
The ROE increased from 29.04% as of December 31, 2020, to 41.19% as of December 31, 2021, showcasing significant growth in profitability and efficiency in utilizing shareholder equity.
Subsequently, the ROE continued to rise to 49.21% by December 31, 2022, reflecting continued improvement in the company's performance in generating profits relative to the equity invested by shareholders.
Although there was a slight decrease in ROE to 36.47% by December 31, 2023, the ratio remained at a healthy level, indicating that NVR Inc continued to generate strong returns for its investors.
By the end of December 31, 2024, the ROE stood at 39.95%, demonstrating a consistent ability by NVR Inc to deliver value to shareholders through effective management of the company's equity. Overall, the upward trend in ROE reflects positively on NVR Inc's operational efficiency and financial strength during the period under review.
Peer comparison
Dec 31, 2024