GURUFOCUS.COM » STOCK LIST » USA » NYSE » NVR Inc (NYSE:NVR) » Definitions » Cash Ratio
Switch to:

NVR Cash Ratio

: 1.76 (As of Jun. 2022)
View and export this data going back to 1986. Start your Free Trial

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. NVR's Cash Ratio for the quarter that ended in Jun. 2022 was 1.76.

NVR has a Cash Ratio of 1.76. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.

The historical rank and industry rank for NVR's Cash Ratio or its related term are showing as below:

NVR' s Cash Ratio Range Over the Past 10 Years
Min: 0.09   Med: 0.65   Max: 4.04
Current: 1.76

During the past 13 years, NVR's highest Cash Ratio was 4.04. The lowest was 0.09. And the median was 0.65.

NVR's Cash Ratio is ranked better than
95.19% of 104 companies
in the Homebuilding & Construction industry
Industry Median: 0.38 vs NVR: 1.76

NVR Cash Ratio Historical Data

The historical data trend for NVR's Cash Ratio 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cash Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 1.15 1.75 3.29 3.12

NVR Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Cash Ratio 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 Premium Member Only Premium Member Only Premium Member Only 3.08 3.39 3.12 2.25 1.76

Competitive Comparison

For the Residential Construction subindustry, NVR's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's Cash Ratio distribution charts can be found below:

* The bar in red indicates where NVR's Cash Ratio falls into.



NVR Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

NVR's Cash Ratio for the fiscal year that ended in Dec. 2021 is calculated as:

Cash Ratio (A: Dec. 2021 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=2573.467/823.814
=3.12

NVR's Cash Ratio for the quarter that ended in Jun. 2022 is calculated as:

Cash Ratio (Q: Jun. 2022 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=1499.603/853.818
=1.76

* 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) Cash Ratio Explanation

The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.

The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.

In general, the higher the cash ratio, the better the company's liquidity position.


NVR Cash Ratio Related Terms

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


NVR Business Description

NVR logo
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 a mortgage banking segment and building products operations.
Executives
Bailey Sallie B director FERRO CORPORATION 1000 LAKESIDE AVENUE CLEVELAND OH 44124-1147
Praylo Paul W officer: SVP, Chief Operating Officer 11700 PLAZA AMERICA DR SUITE 500 RESTON VA 20190
Jung Alexandra A director 11700 PLAZA AMERICA DR SUITE 500 RESTON VA 20190
Ross Susan Williamson director 11700 PLAZA AMERICA DR, SUITE 500 RESTON VA 20190
Kelpy Matthew B. officer: VP, Chief Accounting Officer 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Martchek Jeffrey D officer: President of Homebuilding Ops 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Grier Eddie Arthur director 11700 PLAZA AMERICA DRIVE, SUITE 500 RESTON VA 20190
Malzahn Daniel David officer: Chief Financial Officer 11700 PLAZA AMERICA DRIVE, SUITE 500 RESTON VA 20190
Martinez Melquiades R. director 450 SOUTH ORANGE AVENUE SUITE 250 ORLANDO FL 32801-3443
Bredow Eugene James officer: Controller 11700 PLAZA AMERICA DRIVE SUITE 500 RESTON VA 20190
Eckert Thomas D director 1997 ANNAPOLIS EXCHANGE PARKWAY SUITE 410 ANNAPOLIS MD 21401
Goethe Robert A officer: President, NVRM, Inc. PO BOX 669 MONTGOMERY AL 36104
Festa Alfred E director
Rosier William Grady director 1111 MILLCREEK DRIVE SALADO TX 76571
Andrews Charles Elliott director C/O H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

NVR Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)