NVR Inc (NVR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,143,474 | 2,054,741 | 2,055,375 | 1,992,577 | 1,956,127 | 2,047,027 | 2,046,377 | 2,154,675 | 2,292,718 | 2,151,109 | 2,052,762 | 1,897,228 | 1,643,520 | 1,602,052 | 1,487,826 | 1,276,447 | 1,118,905 | 1,022,234 | 962,557 | 994,214 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 50.91% | 48.11% | 49.72% | 45.87% | 44.82% | 49.06% | 49.27% | 56.03% | 65.38% | 69.73% | 68.62% | 69.61% | 54.74% | 53.10% | 48.90% | 41.90% | 36.06% | 35.02% | 36.85% | 41.14% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,143,474K ÷ ($—K + $4,210,070K)
= 50.91%
The return on total capital for NVR Inc has shown a fluctuating trend over the periods provided.
In the most recent quarter, December 31, 2024, the return on total capital stood at 50.91%, indicating the company generated $0.5091 in profit for every dollar of capital invested.
There was a significant increase in return on total capital from the first quarter of 2022 to the second quarter of 2022, reaching a peak of 69.73%. This suggests that the company efficiently utilized its total capital to generate profits during that period.
However, after peaking in the second quarter of 2022, the return on total capital started to decline gradually, dropping to 44.82% by the end of December 31, 2023.
Overall, while the return on total capital for NVR Inc has experienced fluctuations, it has generally remained at relatively high levels, demonstrating the company's ability to efficiently generate profits from its total capital investments.
Peer comparison
Dec 31, 2024