KB Home (KBH)

Cash ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cash and cash equivalents	US$ in thousands	727,342	330,198	292,136	682,529	454,858
Short-term investments	US$ in thousands	—	46,785	—	—	—
Total current liabilities	US$ in thousands	810,860	1,149,500	1,128,730	940,869	881,555
Cash ratio		0.90	0.33	0.26	0.73	0.52

November 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($727,342K + $—K) ÷ $810,860K
= 0.90

The cash ratio for KB Home has fluctuated over the past five years. As of November 30, 2023, the cash ratio stands at 0.63, indicating a significant increase from the previous year's 0.29. This suggests that KB Home's ability to cover its short-term liabilities with its readily available cash and cash equivalents has improved. Compared to the ratios in 2021 and 2019, the current ratio remains higher, reflecting an ongoing strengthening of the company's short-term liquidity position. However, it is worth noting that the ratio was substantially higher in 2020 at 0.72, indicating that KB Home had a larger proportion of cash and cash equivalents in relation to its current liabilities in that year. Overall, the trend in the cash ratio illustrates fluctuations in the company's liquidity position, and investors and creditors may consider the upward trend in 2023 as a positive indicator of improved short-term liquidity.