KB Home (KBH)
Total 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 |
| Total assets | US$ in thousands | 6,648,360 | 6,651,930 | 5,835,920 | 5,356,440 | 5,015,480 |
| Total asset turnover | 0.96 | 1.04 | 0.98 | 0.78 | 0.91 |
November 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,410,630K ÷ $6,648,360K
= 0.96
The total asset turnover ratio is a measure of a company's efficiency in utilizing its assets to generate sales. KB Home's total asset turnover ratio has fluctuated over the past five years, with values of 0.96 in 2023, 1.04 in 2022, 0.98 in 2021, 0.78 in 2020, and 0.91 in 2019.
A declining trend in the ratio indicates a decrease in the company's ability to generate sales from its total assets, which could be a cause for concern. Conversely, an increasing trend suggests improved efficiency in asset utilization.
The relatively high ratio in 2022 indicates that KB Home was generating more sales for each dollar of assets, but the subsequent decrease in 2023 indicates a potential decline in asset utilization efficiency. Further analysis of the company's operational and financial strategies is necessary to understand the factors driving these changes in total asset turnover.
Peer comparison
Nov 30, 2023