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NVR (NVR) Debt-to-EBITDA

: 0.51 (As of Dec. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

NVR's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. NVR's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,014 Mil. NVR's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,981 Mil. NVR's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.51.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for NVR's Debt-to-EBITDA or its related term are showing as below:

NVR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.44   Med: 0.76   Max: 1.39
Current: 0.51

During the past 13 years, the highest Debt-to-EBITDA Ratio of NVR was 1.39. The lowest was 0.44. And the median was 0.76.

NVR's Debt-to-EBITDA is ranked better than
88.51% of 87 companies
in the Homebuilding & Construction industry
Industry Median: 2.69 vs NVR: 0.51

NVR Debt-to-EBITDA Historical Data

The historical data trend for NVR's Debt-to-EBITDA 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.64 1.39 0.96 0.44 0.51

NVR Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA 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 0.43 0.57 0.53 0.46 0.51

Competitive Comparison

For the Residential Construction subindustry, NVR's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution

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

* The bar in red indicates where NVR's Debt-to-EBITDA falls into.



NVR Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

NVR's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 1014.299) / 1973.029
=0.51

NVR's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 1014.299) / 1980.676
=0.51

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


NVR  (NYSE:NVR) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


NVR Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of NVR's Debt-to-EBITDA 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

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