NVR Inc (NVR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.52 | 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 |
NVR Inc's solvency ratios, which include the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate a consistently low level of debt relative to its assets, capital, and equity over the evaluated periods. The Debt-to-assets ratio remained at 0.00 throughout the reporting periods, showcasing the company's ability to finance its operations primarily through equity and retained earnings rather than debt. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also remained stable at 0.00, indicating a strong capital structure with minimal reliance on borrowed funds.
The Financial leverage ratio witnessed some fluctuations but generally remained at relatively low levels between 1.50 and 2.10. This ratio indicates the extent to which the company is using debt to finance its operations compared to equity. The fluctuations in the Financial leverage ratio may suggest changes in the company's capital structure and the mix of debt and equity financing over time.
Overall, the solvency ratios of NVR Inc reflect a conservative financial strategy characterized by low debt levels and a healthy balance between debt and equity. The company's consistent low debt ratios indicate a strong financial position and the ability to withstand financial challenges while maintaining stability and sustainable growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of covering its interest payments from its operating income.
Analyzing NVR Inc's interest coverage ratio over the past few years shows a generally positive trend. The ratio has been consistently above 1, indicating that the company's operating income is sufficient to cover its interest expenses. The ratio has experienced fluctuations but has mostly been on an increasing trend over the years.
Specifically looking at the data provided, NVR Inc's interest coverage ratio was 38.76 in March 2020 and gradually decreased to a low point of 26.71 in March 2021. However, the ratio then started to climb steadily, reaching 76.64 by December 2024. This upward trend indicates an improvement in the company's ability to cover its interest expenses over the years.
Overall, based on the trend observed in NVR Inc's interest coverage ratio, the company seems to have a strong ability to meet its interest payment obligations, which is a positive indicator of its financial health and stability.