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.