NVR Inc (NVR)
Debt-to-equity 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-equity 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,364,720K
= 0.00
The debt-to-equity ratio of NVR Inc. has shown a decreasing trend over the past eight quarters, indicating a strong financial position in terms of capital structure. The ratio has decreased from 0.56 in Q1 2022 to 0.21 in Q4 2023. This downward trend suggests that the company has been reducing its reliance on debt financing in comparison to equity financing.
A lower debt-to-equity ratio indicates that NVR Inc. has been effectively managing its debt levels relative to its equity, which can be viewed positively by investors and creditors. A ratio below 1.0 typically suggests that the company relies more on equity financing than debt financing to fund its operations and growth.
Overall, the decreasing trend in the debt-to-equity ratio of NVR Inc. reflects a stronger balance sheet and a reduced level of financial risk associated with high debt levels.
Peer comparison
Dec 31, 2023