NVR Inc (NVR)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	2,341,240	2,371,460	2,119,440	1,898,780
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 shown a declining trend throughout the most recent quarters, indicating a decrease in the proportion of debt relative to total capital. In Q4 2023, the ratio stood at 0.17, which is the lowest observed in the past eight quarters. This suggests that NVR Inc. is effectively managing its debt levels and relying less on debt financing compared to previous periods.

The downward trend in the debt-to-capital ratio can be a positive sign for investors and creditors, as lower levels of debt typically indicate lower financial risk and leverage for the company. It also indicates that NVR Inc. may have a stronger financial position and better ability to cover its debt obligations.

The significant improvement in the debt-to-capital ratio from Q1 2022 to Q4 2023, where the ratio decreased from 0.36 to 0.17, reflects a substantial reduction in the company's debt relative to its total capital over this period. This may be attributed to various factors, such as improved profitability, better cash flow management, or reduced borrowing.

Overall, the decreasing trend in NVR Inc.'s debt-to-capital ratio signals a positive financial development, demonstrating prudent debt management and potentially enhancing the company's overall financial stability and creditworthiness.