KB Home (KBH)

Current ratio

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Total current assets	US$ in thousands	385,100	508,200	330,198	292,136	682,529
Total current liabilities	US$ in thousands	—	810,860	1,149,500	1,128,730	940,869
Current ratio		—	0.63	0.29	0.26	0.73

November 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $385,100K ÷ $—K
= —

The current ratio of KB Home has fluctuated over the past five years. As of November 30, 2020, the current ratio was 0.73, indicating that the company had $0.73 in current assets for every $1 in current liabilities. However, by November 30, 2021, the current ratio significantly dropped to 0.26, suggesting a decrease in the company's ability to cover its short-term obligations with its current assets.

Subsequently, the ratio improved slightly to 0.29 by November 30, 2022, but it remained below 1, which may raise concerns about KB Home's liquidity position. By November 30, 2023, the current ratio improved more significantly to 0.63, indicating a better ability to meet short-term obligations.

Notably, the current ratio for November 30, 2024, is not available. It is important to note that a current ratio below 1 may raise questions about the company's short-term financial health and ability to pay its current liabilities, while a ratio above 1 is generally considered more favorable. Overall, fluctuations in the current ratio should be closely monitored to assess KB Home's liquidity position over time.