KB Home (KBH)

Fixed asset turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Revenue	US$ in thousands	6,410,630	6,900,180	5,719,860	4,183,170	4,552,750
Property, plant and equipment	US$ in thousands	88,309	89,234	76,313	65,547	65,043
Fixed asset turnover		72.59	77.33	74.95	63.82	70.00

November 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,410,630K ÷ $88,309K
= 72.59

The fixed asset turnover ratio for KB Home has been fluctuating over the past five years. It decreased from 70 in 2019 to 63.82 in 2020, and then increased to 75.02 in 2021 before further increasing to 77.37 in 2022. However, there was a slight decline to 72.59 in 2023.

The ratio indicates the company's efficiency in generating sales from its investments in fixed assets. A higher ratio suggests that the company is utilizing its fixed assets more effectively to generate sales. Despite the slight decrease in 2023, the trend over the years shows that KB Home has improved its ability to generate sales from its fixed assets. This may reflect improved operational efficiency or an increase in sales relative to the investment in fixed assets.