NVR Inc (NVR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,364,720K)
= 0.00
The debt-to-capital ratio of NVR Inc. has fluctuated over the past five years. In 2023, the ratio decreased to 0.17 from 0.21 in 2022, indicating that the company had a lower level of debt relative to its capital structure. This could signify improved financial health and reduced financial risk for the company.
Compared to 2021 and 2020 when the ratio was 0.34 and 0.33 respectively, the current level of debt relative to capital is significantly lower. This suggests that NVR Inc. may have actively managed its debt levels or improved its capital base in 2023.
In 2019, the debt-to-capital ratio was lower at 0.20 compared to subsequent years. The recent decrease in the ratio to 0.17 in 2023 suggests a positive trend of decreasing reliance on debt financing relative to the total capital employed by the company, which could enhance its financial stability and leverage position.
Overall, the decreasing trend in NVR Inc.'s debt-to-capital ratio from 2022 to 2023 indicates potential improvements in the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023