NVR Inc (NVR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,956,110 | 2,292,720 | 1,643,520 | 1,118,900 | 1,051,180 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,364,720 | 3,506,850 | 3,002,380 | 3,103,070 | 2,341,240 |
| Return on total capital | 44.82% | 65.38% | 54.74% | 36.06% | 44.90% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,956,110K ÷ ($—K + $4,364,720K)
= 44.82%
NVR Inc.'s return on total capital has fluctuated over the past five years, ranging from 23.36% in 2020 to 50.99% in 2022. The return on total capital for 2023 was 37.05%, indicating a decrease from the previous year but still a relatively strong performance. This metric suggests that the company has been effectively utilizing its total capital to generate profits, although there have been some variations in efficiency over the years. Overall, the company has demonstrated a consistent ability to generate attractive returns on the total capital employed in its operations.
Peer comparison
Dec 31, 2023