KB Home (KBH)

Fixed asset turnover

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Revenue	US$ in thousands	6,942,600	6,410,630	6,900,180	5,719,860	4,183,170
Property, plant and equipment	US$ in thousands	90,359	88,309	89,234	76,313	65,547
Fixed asset turnover		76.83	72.59	77.33	74.95	63.82

November 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,942,600K ÷ $90,359K
= 76.83

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its investments in fixed assets. For KB Home, the fixed asset turnover has shown a positive trend over the past five years.

In November 2020, the fixed asset turnover was 63.82, indicating that KB Home generated $63.82 in revenue for every dollar invested in fixed assets. This ratio increased to 74.95 in November 2021, further improving to 77.33 in November 2022, suggesting that the company was utilizing its fixed assets more efficiently to generate revenue.

However, there was a slight decrease in the fixed asset turnover to 72.59 in November 2023, before rising again to 76.83 in November 2024. This indicates that KB Home has been able to effectively manage its fixed assets to generate revenue, although there was a temporary dip in efficiency in 2023.

Overall, the upward trend in KB Home's fixed asset turnover ratio suggests that the company has been successful in maximizing the productivity of its fixed assets to drive revenue growth over the analyzed period.