KB Home (KBH)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	668,295	727,342	612,397	557,457	260,827	330,198	197,257	246,581	242,737	292,136	351,345	609,047	570,959	682,529	723,126	576,033	430,927	454,858	184,837	179,764
Short-term investments	US$ in thousands	—	—	—	—	51,188	46,785	25,966	27,222	12,415	16,317	11,151	12,492	11,197	10,978	10,298	14,243	9,446	14,374	9,162	8,346
Total current liabilities	US$ in thousands	1,038,990	810,860	1,055,420	1,028,670	1,028,410	1,149,500	1,205,700	1,199,930	1,116,260	1,128,730	1,048,800	982,679	929,651	940,869	862,350	783,261	858,539	881,555	911,023	868,736
Cash ratio		0.64	0.90	0.58	0.54	0.30	0.33	0.19	0.23	0.23	0.27	0.35	0.63	0.63	0.74	0.85	0.75	0.51	0.53	0.21	0.22

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($668,295K + $—K) ÷ $1,038,990K
= 0.64

The cash ratio of KB Home has shown fluctuations over the past twenty quarters. The ratio has ranged from a low of 0.19 to a high of 0.90 during this period. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash to cover its short-term obligations.

KB Home's cash ratio has generally been above 0.5 in recent quarters, reflecting a relatively healthy liquidity position. However, there have been periods where the ratio dipped below this threshold, indicating potential liquidity challenges. It's important for investors and analysts to closely monitor the cash ratio to assess the company's ability to meet its short-term financial obligations. Additionally, comparing the cash ratio with industry peers can provide insights into KB Home's liquidity relative to its competitors.