NVR Inc (NVR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,143,290 | 1,956,110 | 2,292,720 | 1,643,520 | 1,118,900 |
| Interest expense | US$ in thousands | 27,783 | 27,740 | 39,524 | 53,117 | 40,872 |
| Interest coverage | 77.14 | 70.52 | 58.01 | 30.94 | 27.38 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,143,290K ÷ $27,783K
= 77.14
The interest coverage ratio for NVR Inc has been consistently strong and improving over the past five years. In December 31, 2020, the interest coverage ratio was 27.38, indicating that NVR Inc earned 27.38 times the amount needed to cover its interest expenses.
By December 31, 2024, the interest coverage ratio had increased further to 77.14, depicting a significant improvement in the company's ability to cover its interest obligations. This trend suggests that NVR Inc has been effectively managing its debt and interest payments, signaling financial stability and robust operational performance.
Overall, the increasing trend in NVR Inc's interest coverage ratio indicates that the company has a solid financial position and is well-equipped to meet its interest payment obligations, which bodes well for its long-term financial health and sustainability.
Peer comparison
Dec 31, 2024