NVR Inc (NVR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 6,601,760 | 5,660,970 | 5,834,480 | 5,777,140 | 3,809,820 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $6,601,760K
= 0.00
The debt-to-assets ratio of NVR Inc. has fluctuated over the past five years. In 2023, the ratio improved to 0.14 from 0.16 in 2022, indicating a decrease in the proportion of debt relative to total assets. This decline suggests that NVR Inc. is relying less on debt financing and has a stronger ability to cover its debts with its assets.
Comparing to previous years, the ratio was notably higher in 2021 and 2020 at 0.26, signifying a higher debt burden relative to total assets during those years. However, it is positive to see the ratio return to a more favorable level in 2023.
The ratio's movement over the years reflects changes in the company's capital structure and financial strategy. The decrease in the debt-to-assets ratio in 2023 may imply improved financial stability and reduced risk for NVR Inc. as it continues to manage its debt levels effectively.
Peer comparison
Dec 31, 2023