KB Home (KBH)

Inventory turnover

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Cost of revenue (ttm)	US$ in thousands	116,248	115,625	134,108	127,482	126,341	125,256	93,882	97,582	97,091	100,144	977,028	1,770,279	2,508,199	3,384,534	3,683,742	3,828,948	3,928,396	3,713,260	3,564,100	3,621,793
Inventory	US$ in thousands	5,243,580	5,133,650	5,185,880	5,128,840	5,445,150	5,543,180	5,736,700	5,557,650	5,197,830	4,802,830	4,655,880	4,272,570	4,123,950	3,897,480	3,671,130	3,607,460	3,728,620	3,704,600	3,919,080	3,780,850
Inventory turnover		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	1.00	0.91	0.96

February 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $116,248K ÷ $5,243,580K
= 0.02

The inventory turnover ratio for KB Home has been relatively low and stable around 0.02 for most of the recent quarters, indicating a slow rate at which the company is selling and replacing its inventory. However, there was a significant jump in the inventory turnover ratio in the third quarter of 2021, reaching 0.21, followed by further improvements in subsequent quarters, reaching a peak of 1.06 in the first quarter of 2020. This suggests that KB Home has been more efficient in managing its inventory and turning it into sales in those periods. Overall, the inventory turnover ratio fluctuates over time, reflecting changes in the company's inventory management practices and sales performance.