NVR Inc (NVR)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,380,990 | 6,488,160 | 6,407,290 | 6,538,160 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,210,070 | 4,271,250 | 4,133,910 | 4,344,380 | 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 |
| Financial leverage ratio | 1.52 | 1.52 | 1.55 | 1.50 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,380,990K ÷ $4,210,070K
= 1.52
Based on the provided data, NVR Inc's financial leverage ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The financial leverage ratio measures the company's level of debt relative to its equity, indicating the extent to which the company is relying on debt to finance its operations.
NVR Inc's financial leverage ratio ranged from 1.50 to 2.10 during this period. A higher financial leverage ratio suggests a higher level of financial risk and indicates that the company is more heavily reliant on debt financing. Conversely, a lower ratio indicates a lower level of debt relative to equity.
The trend in NVR Inc's financial leverage ratio shows some variability, with fluctuations observed in different quarters. It reached its peak at 2.10 in March 31, 2022, and experienced a decline in the following quarters before stabilizing around 1.50 to 1.55 in the most recent quarters of June 30, 2024, to December 31, 2024.
Overall, monitoring the financial leverage ratio is crucial for assessing the company's financial health and risk exposure. NVR Inc's fluctuating ratio indicates varying levels of debt utilization and capital structure adjustments within the analyzed period.
Peer comparison
Dec 31, 2024