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NVR (NVR) Degree of Operating Leverage : 0.44 (As of Mar. 2025)


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What is NVR Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NVR's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for NVR's Degree of Operating Leverage or its related term are showing as below:

NVR's Degree of Operating Leverage is ranked better than
60.22% of 93 companies
in the Homebuilding & Construction industry
Industry Median: 1.13 vs NVR: 0.44

NVR Degree of Operating Leverage Historical Data

The historical data trend for NVR's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

NVR Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.29 2.50 2.24 1.54 0.90

NVR Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage 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 1.20 -0.80 0.11 0.90 0.44

Competitive Comparison of NVR's Degree of Operating Leverage

For the Residential Construction subindustry, NVR's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, NVR's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where NVR's Degree of Operating Leverage falls into.


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NVR Degree of Operating Leverage Calculation

NVR's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2075.229 (Mar. 2025) / 1992.563 (Mar. 2024) - 1 )/( 10612.854 (Mar. 2025) / 9691.149 (Mar. 2024) - 1 )
=0.0415/0.0951
=0.44***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


NVR  (NYSE:NVR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


NVR Degree of Operating Leverage Related Terms

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


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. It builds single-family detached homes, townhomes, and condominium buildings under three brands, Ryan Homes, NVHomes, and Heartland Homes. The company through its subsidiary also operates a mortgage banking and title services business. The homebuilding segment includes four geographic areas of the Mid-Atlantic, North East, Mid-East, and South East.
Executives
Thomas D Eckert director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
David A Preiser director
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
Susan Williamson Ross director 11700 PLAZA AMERICA DR, 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
William Grady Rosier director 1111 MILLCREEK DRIVE, SALADO TX 76571
Daniel David Malzahn officer: Chief Financial Officer 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
Eugene James Bredow officer: Controller 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
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
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