KB Home (KBH)

Short-term

Turnover ratios

The inventory turnover ratio for KB Home has significantly decreased over the years, from 0.87 in November 2020 to only 0.02 in November 2021, 2022, and 2023, and no data available for 2024. This indicates that the company is taking a longer time to sell its inventory, which could potentially tie up capital and lead to excess inventory.

The receivables turnover ratio, which measures how efficiently a company is collecting its receivables, is not available for any of the years, suggesting that there is no data to analyze the effectiveness of KB Home in collecting payments from its customers.

The payables turnover ratio, which assesses how quickly a company is paying off its suppliers, is also not provided for any of the years, indicating a lack of data to evaluate the company's payment practices.

On the other hand, the working capital turnover ratio for KB Home is significant at 18.03 times in November 2024. This implies that the company generated $18.03 in revenue for every $1 of working capital invested, indicating effective utilization of its working capital to drive sales.

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Average number of days

The activity ratios analysis for KB Home based on the provided data shows significant fluctuations over the years:

1. Days of Inventory on Hand:
- November 30, 2020: 420.32 days
- November 30, 2021: 16,392.06 days
- November 30, 2022: 15,146.09 days
- November 30, 2023: 16,205.68 days
- November 30, 2024: Not available

The Days of Inventory on Hand measure indicates the number of days a company takes to sell its inventory. KB Home experienced a dramatic increase in this ratio from 2020 to 2021, suggesting a significant build-up in inventory levels relative to sales. However, the ratio improved in the subsequent years, indicating better inventory management.

2. Days of Sales Outstanding (DSO):
- No data available

DSO represents the average number of days it takes for a company to collect revenue after a sale. Without available data, it is difficult to assess KB Home's efficiency in collecting its accounts receivable.

3. Number of Days of Payables:
- No data available

The number of days of payables ratio reflects how long a company takes to pay its suppliers. Without data, it is challenging to evaluate KB Home's payment practices and liquidity position.

In conclusion, the significant fluctuations in the Days of Inventory on Hand ratio for KB Home indicate potential changes in inventory management strategies over the years, while the lack of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of the company's overall efficiency in managing working capital and cash flows.

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Long-term

The fixed asset turnover ratio for KB Home has shown a positive trend over the past five years, increasing from 63.82 in November 30, 2020 to 76.83 in November 30, 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.

Similarly, the total asset turnover ratio has also displayed an upward trajectory, rising from 0.78 in November 30, 2020 to 1.00 in November 30, 2024. This suggests that KB Home has been more effective in utilizing its total assets to generate sales revenue over the period under consideration.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios signifies that KB Home has managed to improve its efficiency in generating sales relative to its investment in fixed and total assets, respectively, which is a positive indicator of the company's operational performance and asset utilization efficiency.