KB Home (KBH)
Cash ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 599,193 | 727,342 | 330,198 | 292,136 | 682,529 |
| Short-term investments | US$ in thousands | — | -34,400 | 46,785 | — | — |
| Total current liabilities | US$ in thousands | — | 810,860 | 1,149,500 | 1,128,730 | 940,869 |
| Cash ratio | — | 0.85 | 0.33 | 0.26 | 0.73 |
November 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($599,193K
+ $—K)
÷ $—K
= —
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Looking at the data for KB Home, we can see a fluctuating trend in the cash ratio over the years.
As of November 30, 2020, KB Home had a cash ratio of 0.73, indicating that the company had $0.73 in cash and cash equivalents for every dollar of current liabilities. This suggests that KB Home had a relatively strong liquidity position at that time.
However, by November 30, 2021, the cash ratio had decreased significantly to 0.26, indicating a decline in the company's ability to cover its short-term obligations with cash on hand. This could be a cause for concern as it may suggest potential liquidity challenges for KB Home.
In the following years, the cash ratio improved slightly to 0.33 by November 30, 2022, and further increased to 0.85 by November 30, 2023. These improvements suggest that KB Home was able to enhance its liquidity position, which is a positive sign for the company's financial health.
Unfortunately, the data for November 30, 2024, is missing, so we cannot assess the cash ratio for that year.
In conclusion, while the cash ratio for KB Home has shown fluctuations over the years, the company managed to strengthen its liquidity position in the later years, which is crucial for meeting its short-term obligations and financial stability. It will be important for KB Home to continue monitoring and managing its cash position to ensure it remains at a healthy level in the future.
Peer comparison
Nov 30, 2024