NVR Inc (NVR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,591,611	1,636,304	1,614,540	1,643,827	1,725,575	1,605,388	1,526,076	1,414,057	1,236,719	1,207,142	1,131,527	974,307	901,248	852,381	819,702	865,836	878,539	854,560	826,589	819,554
Total stockholders’ equity	US$ in thousands	4,364,720	4,172,580	4,153,260	3,845,350	3,506,850	3,084,840	2,991,670	2,725,600	3,002,380	3,017,050	3,042,290	3,046,510	3,103,070	2,918,990	2,612,410	2,416,920	2,341,240	2,371,460	2,119,440	1,898,780
ROE		36.47%	39.22%	38.87%	42.75%	49.21%	52.04%	51.01%	51.88%	41.19%	40.01%	37.19%	31.98%	29.04%	29.20%	31.38%	35.82%	37.52%	36.04%	39.00%	43.16%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,591,611K ÷ $4,364,720K
= 36.47%

Analysis of NVR Inc.'s Return on Equity (ROE) shows a decreasing trend over the past two years. ROE has declined from 52.04% in Q3 2022 to 36.47% in Q4 2023. This downward trend may indicate a decrease in profitability relative to shareholders' equity. Although the ROE figures are relatively high, the decreasing trend suggests that the company may not be utilizing its equity efficiently to generate profits. Further investigation into the company's financial performance and equity management strategies may be necessary to address this trend.