NVR Inc (NVR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,143,474	2,054,741	2,055,375	1,992,577	1,956,127	2,047,027	2,046,377	2,154,675	2,292,718	2,151,109	2,052,762	1,897,228	1,643,520	1,602,052	1,487,826	1,276,447	1,118,905	1,022,234	962,557	994,214
Interest expense (ttm)	US$ in thousands	27,968	27,822	27,728	27,322	27,754	27,979	28,154	33,616	39,524	45,832	51,873	52,886	53,117	53,084	51,528	47,783	40,872	34,269	28,875	25,651
Interest coverage		76.64	73.85	74.13	72.93	70.48	73.16	72.69	64.10	58.01	46.93	39.57	35.87	30.94	30.18	28.87	26.71	27.38	29.83	33.34	38.76

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,143,474K ÷ $27,968K
= 76.64

The interest coverage ratio for NVR Inc has exhibited a generally improving trend from March 31, 2020, through December 31, 2024. The ratio started at a strong level of 38.76 in March 2020, indicating the company's ability to cover its interest expenses nearly 39 times. However, there was a slight decline in the ratio through the first half of 2021, reaching a low of 26.71 in March 2021 before gradually increasing again.

From June 2022 onwards, the interest coverage ratio showed significant improvement, surpassing previous levels. By December 31, 2024, the ratio stood at 76.64, indicating a very strong ability to cover interest expenses.

Overall, the trend in NVR Inc's interest coverage ratio demonstrates a positive trajectory with a notable increase in the company's ability to meet its interest obligations over the analyzed period. This suggests improving financial health and stability in terms of managing debt servicing costs.