NVR Inc (NVR)

Financial leverage 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
Total assets	US$ in thousands	6,601,760	6,372,260	6,266,780	6,075,900	5,660,970	5,389,530	5,287,700	5,726,210	5,834,480	5,788,890	5,854,440	5,820,810	5,777,140	5,499,920	4,730,020	3,887,520	3,809,820	3,843,360	3,603,240	3,362,770
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
Financial leverage ratio		1.51	1.53	1.51	1.58	1.61	1.75	1.77	2.10	1.94	1.92	1.92	1.91	1.86	1.88	1.81	1.61	1.63	1.62	1.70	1.77

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,601,760K ÷ $4,364,720K
= 1.51

The financial leverage ratio of NVR Inc. has shown some fluctuations over the past eight quarters. The ratio indicates the proportion of the company's total assets that are financed by debt.

The trend of the financial leverage ratio for NVR Inc. has been declining from Q1 2022 to Q1 2023, indicating a decreasing reliance on debt to finance its operations. This reduction in leverage can be a positive sign of financial stability and reduced risk, as it suggests less debt exposure and potentially lower interest payment obligations.

However, there was a slight uptick in the ratio in Q3 2023 compared to the previous quarter, suggesting a slight increase in debt relative to total assets. It will be important to monitor this trend in the upcoming quarters to understand if this increase is sustained or if it was just a temporary fluctuation.

Overall, while NVR Inc. has shown some variability in its financial leverage ratio, the recent trend indicates a decreasing reliance on debt financing. This could potentially improve the company's financial position and mitigate risks associated with high debt levels.