NVR Inc (NVR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,591,610 | 1,725,580 | 1,236,720 | 901,248 | 878,539 |
| Total stockholders’ equity | US$ in thousands | 4,364,720 | 3,506,850 | 3,002,380 | 3,103,070 | 2,341,240 |
| ROE | 36.47% | 49.21% | 41.19% | 29.04% | 37.52% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,591,610K ÷ $4,364,720K
= 36.47%
NVR Inc. has demonstrated fluctuating return on equity (ROE) figures over the past five years. The ROE for the most recent period ending December 31, 2023, stands at 36.47%, showing a decline from the prior year when it was at 49.21%. Compared to 2021, the ROE decreased by around 4 percentage points. Despite this decline, the ROE for 2023 remains relatively strong, indicating that the company is generating a respectable level of profit relative to its shareholder equity.
The highest ROE over the five-year period was recorded in 2022 at 49.21%, signaling a particularly successful year for NVR Inc. in terms of utilizing shareholder equity to generate profits. In contrast, the lowest ROE during this period was seen in 2020 at 29.04%, suggesting a decrease in profitability efficiency compared to the surrounding years.
Overall, the ROE trend for NVR Inc. appears to exhibit some variability, with fluctuations between the 29-49% range. Investors and stakeholders may want to further investigate the factors driving these fluctuations and assess the company's ability to consistently generate returns for its equity holders.
Peer comparison
Dec 31, 2023