NVR Inc (NVR)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	1,681,928	1,634,571	1,638,405	1,641,528	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
Total stockholders’ equity	US$ in thousands	4,210,070	4,271,250	4,133,910	4,344,380	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
ROE		39.95%	38.27%	39.63%	37.79%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,681,928K ÷ $4,210,070K
= 39.95%

In analyzing NVR Inc's return on equity (ROE) over the past few years, we observe fluctuations in the metric. ROE is a key financial ratio that indicates how effectively the company is utilizing shareholders' equity to generate profits.

From March 31, 2020, to June 30, 2022, NVR Inc's ROE showed a generally increasing trend, starting at 35.82% and reaching a peak of 52.04%. This upward trajectory suggests that the company was efficiently generating earnings using shareholders' equity during this period.

However, from March 31, 2022, to December 31, 2024, we see some fluctuations in ROE, with values ranging between 36.47% and 52.04%. Although there was a decline in ROE from the peak of 52.04% in September 30, 2022, to 36.47% in December 31, 2023, the ratio picked up again in the subsequent quarters.

Overall, NVR Inc's ROE performance indicates a generally strong profitability relative to shareholders' equity, with some fluctuations observed. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and sustainability of returns.