KB Home (KBH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,930,090	6,604,180	6,438,580	6,494,090	6,410,630	6,676,670	6,934,560	6,889,300	6,903,780	6,638,950	6,261,150	5,981,980	5,724,930	5,243,990	4,775,903	4,248,983	4,183,183	4,547,603	4,709,380	4,817,210
Property, plant and equipment	US$ in thousands	90,359	—	—	—	88,309	111,763	89,804	89,359	89,234	86,219	82,902	79,247	76,313	72,470	69,336	67,558	65,547	64,619	65,764	64,453
Fixed asset turnover		76.70	—	—	—	72.59	59.74	77.22	77.10	77.37	77.00	75.52	75.49	75.02	72.36	68.88	62.89	63.82	70.38	71.61	74.74

November 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,930,090K ÷ $90,359K
= 76.70

The fixed asset turnover ratio for KB Home has shown fluctuation over the years based on the data provided. The ratio indicates the efficiency with which the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio generally signifies better asset utilization efficiency.

From February 29, 2020, to August 31, 2022, the fixed asset turnover ratio exhibited a generally increasing trend, reaching a peak of 77.37 on November 30, 2022. This suggested that KB Home was effectively generating revenue relative to its investment in fixed assets during this period.

However, there was a notable decrease in the fixed asset turnover ratio on August 31, 2023, dropping to 59.74. This decline could potentially indicate a less efficient utilization of fixed assets compared to the previous period.

The lack of data for the fixed asset turnover ratio beyond November 30, 2024, makes it challenging to provide a complete analysis of the trend in recent years. Nonetheless, it is essential for KB Home to monitor and manage its fixed asset turnover ratio to ensure optimal utilization of resources and sustained profitability.