NVR Inc (NVR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| 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 |
NVR Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.14 to 0.16 throughout 2022 and 2023, suggesting that NVR has a low level of debt compared to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown consistency in a range of 0.17 to 0.21 and 0.21 to 0.26 respectively, over the same period. These ratios indicate that NVR relies more on equity financing rather than debt, indicating a lower financial risk.
The financial leverage ratio, which measures the company's financial risk in terms of debt levels, has decreased from 1.75 in Q3 2022 to 1.51 in Q4 2023. This downward trend is positive as it shows a reduction in the company's reliance on debt financing to support its operations.
Overall, NVR Inc.'s solvency ratios reflect a prudent approach to managing its financial structure, maintaining a healthy balance between debt and equity to support its long-term financial stability and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 41.42 | 41.19 | 40.64 | 40.47 |
The interest coverage ratio for NVR Inc. experienced fluctuations over the past eight quarters. In Q4 2022, the ratio was significantly high at 5,171.26, indicating that NVR Inc. earned 5,171.26 times the amount of interest expense it incurred during that quarter. This high ratio suggests a strong ability to cover interest payments from operating income.
In Q1 2023, the interest coverage ratio decreased to 1,629.03 but remained at a healthy level, indicating that NVR Inc. continued to generate sufficient operating income to cover its interest expenses over 1,600 times. However, in Q4 2023, the interest coverage ratio further decreased to 72.75, which is still considered relatively high but signals a significant decline from the previous quarters.
The absence of interest coverage data for Q3, Q2, and Q1 2023 limits a comprehensive analysis of the trend during those periods. It would be important to further investigate the underlying reasons for the fluctuations in NVR Inc.'s interest coverage ratio to assess the company's financial health and ability to manage its debt obligations effectively.