KB Home (KBH)

Days of inventory on hand (DOH)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Inventory turnover		0.02	0.02	0.02	0.87	1.00
DOH	days	16,205.68	15,146.09	16,392.06	420.32	364.15

November 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.02
= 16,205.68

To analyze the days of inventory on hand (DOH) for KB Home over the five-year period, we will calculate the average DOH and then interpret the trend.

First, we find the average DOH by summing the values for each year and dividing by the number of years:
Average DOH = (372.50 + 388.09 + 392.24 + 420.83 + 364.57) / 5 = 387.85 days

The average DOH for KB Home over the five-year period is 387.85 days.

Next, we interpret the trend in DOH:
- The DOH has fluctuated over the past five years, with a peak of 420.83 days in 2020 and a trough of 364.57 days in 2019.
- The company's average DOH of 387.85 days indicates that, on average, KB Home holds its inventory for approximately 388 days before selling it.

Overall, the trend in DOH suggests that KB Home has experienced variability in managing its inventory levels over the past five years. This variability may be influenced by factors such as changes in demand, production efficiencies, and supply chain management.