NVR Inc (NVR)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,210,070 | 4,364,720 | 3,506,850 | 3,002,380 | 3,103,070 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,210,070K)
= 0.00
Based on the data provided, NVR Inc consistently maintains a debt-to-capital ratio of 0.00 throughout the years 2020 to 2024. This indicates that the company has been utilizing primarily equity financing to fund its operations and growth, rather than relying on debt. A debt-to-capital ratio of 0.00 suggests that NVR Inc has no debt in its capital structure during this period, resulting in a strong financial position with lower financial risk and potential cost savings from interest payments. However, it is important to note that while a low debt-to-capital ratio can be favorable, it may also indicate that the company is not taking advantage of the benefits of leverage that debt can provide in terms of financing growth opportunities.
Peer comparison
Dec 31, 2024