KB Home (KBH)

Days of inventory on hand (DOH)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Inventory turnover		0.02	0.02	0.03	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.21	0.41	0.61	0.87	1.00	1.06	1.05	1.00	0.91	0.96
DOH	days	16,464.00	16,205.68	14,114.34	14,684.63	15,731.08	16,153.00	22,303.48	20,788.08	19,540.51	17,505.12	1,739.35	880.93	600.13	420.32	363.75	343.89	346.44	364.15	401.35	381.03

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.02
= 16,464.00

The Days of Inventory on Hand (DOH) for KB Home has shown fluctuations over the past few years. The trend indicates that the company is managing its inventory levels more efficiently in recent periods.

The highest DOH was recorded at 22,303.48 days in August 2022, which could indicate an excess of inventory or slow-moving inventory that may have posed a risk to liquidity and profitability. However, the company managed to significantly reduce this figure to 363.75 days by May 2020, indicating improved inventory management practices.

The decreasing trend continued, reaching a low of 343.89 days in May 2020 and further reducing to 346.44 days by February 2020. This downward trend suggests that KB Home has been able to streamline its inventory levels, potentially leading to lower carrying costs and better cash flow management.

Overall, the improving trend in KB Home's Days of Inventory on Hand indicates enhanced efficiency in managing its inventory, which can positively impact the company's financial performance and overall operational effectiveness.