KB Home (KBH)

Days of inventory on hand (DOH)

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Inventory turnover		0.02	0.02	0.02	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
DOH	days	16,766.61	17,638.11	16,685.58	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

November 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.02
= 16,766.61

The days of inventory on hand (DOH) for KB Home have experienced significant fluctuations over the years, indicating potential changes in the company's inventory management practices.

The DOH for KB Home was relatively stable around 300-400 days from February 2020 to August 2020. However, from November 2020 onwards, there was a substantial increase in DOH, reaching an alarming 17,505.12 days by November 2021. This sharp rise suggests possible inefficiencies in inventory turnover and management during this period.

The trend continued with DOH levels remaining extraordinarily high for several periods until August 2022 when it peaked at 22,303.48 days. Such an extended period of high DOH could indicate inventory management challenges, potential overstocking, or slow inventory turnover for KB Home.

However, starting from August 2022, there was a noticeable decline in DOH levels, reaching around 14,000-16,000 days by November 2023. This decrease suggests that the company may have implemented strategies to improve inventory management efficiency, leading to a reduction in excess inventory levels.

Overall, the fluctuations in KB Home's DOH signal the importance of monitoring inventory levels closely and implementing effective inventory management practices to optimize operational efficiency and financial performance.