NVR Inc (NVR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.52 | 1.51 | 1.61 | 1.94 | 1.86 |
NVR Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its total assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00 across the years, signaling that the company has no significant debt obligations compared to its overall financial resources.
Moreover, the Financial leverage ratio decreased from 1.86 in 2020 to 1.52 in 2024, showing a declining trend. This indicates that NVR Inc is relying less on debt financing to support its operations and growth, which is a positive sign of financial stability and conservative financial management.
Overall, the solvency ratios suggest that NVR Inc has a sound and sustainable capital structure, with a strong ability to meet its financial obligations and weather any potential economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 77.14 | 70.52 | 58.01 | 30.94 | 27.38 |
NVR Inc's interest coverage ratio has shown a consistent upward trend over the past five years, indicating the company's increasing ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
As of December 31, 2020, the interest coverage ratio was 27.38, reflecting that NVR's EBIT was able to cover its interest expense approximately 27 times. This ratio improved to 30.94 by the end of 2021, further strengthening the company's ability to service its debt.
The trend continued to demonstrate significant enhancement with the interest coverage ratio reaching 58.01 by December 31, 2022. This substantial increase suggests a more robust financial position for NVR, with ample earnings to cover interest payments with a comfortable margin.
By the end of 2023, the interest coverage ratio surged to 70.52, indicating a significant improvement in NVR's ability to service its debt obligations. Closing out the analysis on December 31, 2024, the interest coverage ratio further increased to 77.14, signifying a strengthened financial position and a healthier balance sheet outlook.
Overall, NVR Inc's interest coverage ratio has consistently improved over the years, reflecting the company's ability to comfortably meet its interest payments, manage debt effectively, and potentially reduce financial risk.