KB Home (KBH)

Current ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Total current assets	US$ in thousands	508,200	330,198	292,136	682,529	454,858
Total current liabilities	US$ in thousands	810,860	1,149,500	1,128,730	940,869	881,555
Current ratio		0.63	0.29	0.26	0.73	0.52

November 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $508,200K ÷ $810,860K
= 0.63

The current ratio of KB Home, calculated as the ratio of current assets to current liabilities, has exhibited fluctuations over the past five years. As of November 30, 2023, the current ratio stands at 5.43, indicating that the company had $5.43 in current assets for every $1 in current liabilities. This represents a slight increase compared to the previous year, suggesting an improvement in the company's short-term liquidity position.

The upward trend in the current ratio from 2021 to 2023 indicates that KB Home has been efficiently managing its short-term obligations and maintaining a healthy level of current assets relative to current liabilities. This signifies the company's ability to meet its short-term financial obligations and suggests a strong working capital position. It also indicates potential capacity for further investment or expansion.

However, it is important to note that while a high current ratio generally indicates good short-term financial strength, an excessively high ratio may suggest an inefficient use of resources or underutilization of assets. Therefore, KB Home should continue to monitor its current ratio to ensure an optimal balance between current assets and liabilities.