NVR Inc (NVR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,364,720K
= 0.00
The debt-to-equity ratio of NVR Inc. has been fluctuating over the past five years. As of December 31, 2023, the company's debt-to-equity ratio stands at 0.21, indicating that the company has lower debt relative to its equity. This ratio has decreased compared to the previous year, where it was at 0.26.
Looking back at 2021 and 2020, the debt-to-equity ratio was at 0.51 and 0.49, respectively. These values suggest that the company had a higher level of debt compared to its equity during those years. However, the ratio improved in 2019, standing at 0.26, which is the same as the current ratio.
Overall, the decreasing trend in the debt-to-equity ratio over the past two years indicates that NVR Inc. has been managing its debt more efficiently. A lower debt-to-equity ratio generally signifies less financial risk and can be viewed favorably by investors and creditors. It is essential for the company to continue monitoring and maintaining a healthy balance between debt and equity to support its long-term financial stability and growth prospects.
Peer comparison
Dec 31, 2023