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NVR (NVR) EBIT : $1,956 Mil (TTM As of Dec. 2023)


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What is NVR EBIT?

NVR's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $491 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,956 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NVR's annualized ROC % for the quarter that ended in Dec. 2023 was 63.98%. NVR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 109.56%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. NVR's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.96%.


NVR EBIT Historical Data

The historical data trend for NVR's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NVR EBIT Chart

NVR Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,051.18 1,118.91 1,643.52 2,292.72 1,956.11

NVR Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 581.62 441.07 477.97 546.24 490.84

Competitive Comparison of NVR's EBIT

For the Residential Construction subindustry, NVR's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NVR's EV-to-EBIT Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where NVR's EV-to-EBIT falls into.



NVR EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,956 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NVR  (NYSE:NVR) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

NVR's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=1958.596 * ( 1 - 15.28% )/( (2636.412 + 2550.571)/ 2 )
=1659.3225312/2593.4915
=63.98 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6372.263 - 826.935 - ( 2908.916 - max(0, 1182.246 - 5863.607+2908.916))
=2636.412

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6601.757 - 888.292 - ( 3162.894 - max(0, 1222.733 - 5993.705+3162.894))
=2550.571

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

NVR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1963.352/( ( (103.135 + max(1772.445, 0)) + (100.273 + max(1608.078, 0)) )/ 2 )
=1963.352/( ( 1875.58 + 1708.351 )/ 2 )
=1963.352/1791.9655
=109.56 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(33.878 + 2003.773 + 917.04) - (826.935 + 355.311 + 2.2737367544323E-13)
=1772.445

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(29 + 1950.15 + 851.661) - (888.292 + 334.441 + 0)
=1608.078

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

NVR's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=1956.113/21834.113
=8.96 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NVR EBIT Related Terms

Thank you for viewing the detailed overview of NVR's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


NVR (NVR) Business Description

Traded in Other Exchanges
Address
11700 Plaza America Drive, Suite 500, Reston, VA, USA, 20190
NVR Inc is a United States-based homebuilding company operating in over 33 metropolitan areas across the east of the Mississippi River. The company builds single-family detached homes, townhomes, and condominium buildings under three brands, Ryan Homes, NVHomes, and Heartland Homes. NVR's avoidance of direct land development activity is unique among public homebuilders and results in relatively outsize return metrics. The Virginia-based company also manages mortgage banking segment and homebuilding operating segments. The homebuilding segment includes four geographic areas; Mid-Atlantic, North East, Mid-East, and South East.
Executives
Daniel David Malzahn officer: Chief Financial Officer 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
Paul C Saville officer: Executive Vice President, CFO C/O NVR INC, 7601 LEWINSVILLE ROAD SUITE 300, MCLEEAN VA 22102
Susan Williamson Ross director 11700 PLAZA AMERICA DR, SUITE 500, RESTON VA 20190
Eugene James Bredow officer: Controller 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
Matthew B. Kelpy officer: VP, Chief Accounting Officer 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
Melquiades R. Martinez director 450 SOUTH ORANGE AVENUE, SUITE 250, ORLANDO FL 32801-3443
Alfred E Festa director
Charles Elliott Andrews director C/O H&R BLOCK, ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Sallie B Bailey director FERRO CORPORATION, 1000 LAKESIDE AVENUE, CLEVELAND OH 44124-1147
Thomas D Eckert director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Manuel H Johnson director C/O NVR INC, 7601 LEWINSVILLE ROAD SUITE 300, MCLEEAN VA 22102
Paul W Praylo officer: SVP, Chief Operating Officer 11700 PLAZA AMERICA DR, SUITE 500, RESTON VA 20190
Alexandra A Jung director 11700 PLAZA AMERICA DR, SUITE 500, RESTON VA 20190
Jeffrey D Martchek officer: President of Homebuilding Ops 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
David A Preiser director