KB Home (KBH)

Cash ratio

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Cash and cash equivalents	US$ in thousands	599,193	375,693	644,252	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
Short-term investments	US$ in thousands	—	-19,743	—	—	—	—	—	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
Total current liabilities	US$ in thousands	384,894	842,256	1,051,090	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
Cash ratio		1.56	0.42	0.61	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

November 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($599,193K + $—K) ÷ $384,894K
= 1.56

The cash ratio of KB Home has shown some fluctuations over the period from February 29, 2020, to November 30, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

From February 29, 2020, to May 31, 2021, the cash ratio was relatively stable, ranging from 0.51 to 0.75, indicating that KB Home had a moderate level of cash to cover its short-term obligations during this period. However, from August 31, 2021, to August 31, 2022, there was a decline in the cash ratio, dropping to as low as 0.19. This suggests that the company may have experienced some challenges in maintaining sufficient cash reserves to meet its short-term financial commitments.

Interestingly, there was a significant improvement in the cash ratio from November 30, 2022, to November 30, 2024, reaching its peak at 1.56. This sharp increase indicates that KB Home significantly enhanced its liquidity position and strengthened its ability to meet short-term obligations with available cash and cash equivalents during this period.

Overall, the cash ratio trend for KB Home reflects both periods of stability and periods of improvement and decline in liquidity. It is essential for investors and analysts to monitor the cash ratio to assess the company's short-term liquidity position and the ability to address financial obligations timely.