NVR (FRA:NVE) Inventory-to-Revenue : 0.82 (As of Dec. 2023)

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What is NVR Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. NVR's Average Total Inventories for the quarter that ended in Dec. 2023 was €1,833 Mil. NVR's Revenue for the three months ended in Dec. 2023 was €2,235 Mil. NVR's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.82.

NVR's Inventory-to-Revenue for the quarter that ended in Dec. 2023 increased from Sep. 2023 (0.78) to Sep. 2023 (0.82)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. NVR's Days Inventory for the three months ended in Dec. 2023 was 100.60.

Inventory Turnover measures how fast the company turns over its inventory within a year. NVR's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.91.

NVR Inventory-to-Revenue Historical Data

The historical data trend for NVR's Inventory-to-Revenue 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 Inventory-to-Revenue Chart

NVR Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.17

0.21

0.20

0.17

0.20

NVR Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory-to-Revenue	Get a 7-Day Free Trial															0.84	0.83	0.78	0.82	0.87

Competitive Comparison of NVR's Inventory-to-Revenue

For the Residential Construction subindustry, NVR's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution in the Homebuilding & Construction Industry

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

* The bar in red indicates where NVR's Inventory-to-Revenue falls into.

NVR Inventory-to-Revenue Calculation

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

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (1688.132	+	1788.288)	/	2 )	/	8743.493
=	1738.21					/	8743.493
=	0.20

NVR's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (1877.535	+	1788.288)	/	2 )	/	2235.049
=	1832.9115					/	2235.049
=	0.82

NVR (FRA:NVE) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

NVR's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1832.9115	/	1662.492	*	365 / 4
	=	100.60

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

NVR's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	1662.492	/	1832.9115
	=	0.91

NVR Inventory-to-Revenue Related Terms

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NVR (FRA:NVE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » NVR Inc (FRA:NVE) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

NVR:USA N1VR34:Brazil

Address

11700 Plaza America Drive, Suite 500, Reston, VA, USA, 20190

Website

https://www.nvrinc.com

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.

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