KB Home (KBH)

Total asset 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
Revenue (ttm)	US$ in thousands	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	4,552,753	4,342,683	4,407,243
Total assets	US$ in thousands	6,683,490	6,648,360	6,576,990	6,483,020	6,514,100	6,651,930	6,730,590	6,579,480	6,188,330	5,835,920	5,756,350	5,618,930	5,426,780	5,356,440	5,177,430	5,042,000	5,052,830	5,015,480	5,035,170	4,919,950
Total asset turnover		0.97	0.96	1.02	1.07	1.06	1.04	0.99	0.95	0.97	0.98	0.91	0.85	0.78	0.78	0.88	0.93	0.95	0.91	0.86	0.90

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,494,090K ÷ $6,683,490K
= 0.97

Total asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its assets. It indicates how efficiently the company is utilizing its assets to generate revenue.

An analysis of KB Home's total asset turnover over the past 20 quarters shows some fluctuations in the ratio. The ratio ranged from 0.78 to 1.07 during this period, with an average of around 0.94.

A total asset turnover ratio of less than 1 indicates that the company is not efficiently utilizing its assets to generate sales. KB Home's total asset turnover has generally remained below 1, suggesting that the company may have inefficiencies in managing its assets to generate revenue.

However, it is important to consider the nature of the construction industry, where companies like KB Home may have a longer asset turnover cycle compared to other industries. Therefore, a total asset turnover slightly below 1 may not necessarily indicate poor performance in this context.

Overall, while KB Home's total asset turnover has been relatively stable over the analyzed period, further examination of the company's operational efficiency and asset utilization practices may provide more insights into its performance.