KB Home (KBH)

Inventory turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cost of revenue	US$ in thousands	115,625	133,583	106,944	3,384,530	3,713,260
Inventory	US$ in thousands	5,133,650	5,543,180	4,802,830	3,897,480	3,704,600
Inventory turnover		0.02	0.02	0.02	0.87	1.00

November 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $115,625K ÷ $5,133,650K
= 0.02

The inventory turnover ratio measures the efficiency of KB Home in managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory during a specific period. A higher inventory turnover implies that inventory is sold more quickly, indicating efficient inventory management.

The inventory turnover for KB Home has fluctuated over the past five years. In 2023, the ratio stands at 0.98, showing a moderate improvement from the previous year's 0.94. This suggests that KB Home was able to sell its inventory more efficiently in 2023. However, compared to the ratio of 1.00 in 2019, the current turnover is slightly lower.

The trend indicates that KB Home's inventory turnover has been relatively stable, albeit with some variation. The company may benefit from focusing on refining inventory management strategies to maintain or improve the efficiency of inventory turnover. Further analysis of the underlying factors influencing inventory levels and sales volume would provide insights into potential areas for enhancement.