KB Home (KBH)

Current 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
Total current assets	US$ in thousands	488,400	508,200	460,900	372,600	51,300	330,198	197,257	246,581	242,737	292,136	351,345	609,047	570,959	682,529	766,426	619,333	475,231	454,858	184,837	179,764
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
Current ratio		0.47	0.63	0.44	0.36	0.05	0.29	0.16	0.21	0.22	0.26	0.33	0.62	0.61	0.73	0.89	0.79	0.55	0.52	0.20	0.21

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $488,400K ÷ $1,038,990K
= 0.47

The current ratio of KB Home has exhibited fluctuations over the past few quarters, indicating volatility in the company's short-term liquidity position. The current ratio, which is calculated as current assets divided by current liabilities, provides insight into the firm's ability to cover its short-term obligations with its current assets.

In February 2024, the current ratio was 0.47, reflecting that KB Home had only 47 cents in current assets for every dollar of current liabilities. This suggests potential challenges in meeting its short-term obligations. However, it improved to 0.63 in November 2023 and further to 0.44 in August 2023, indicating a temporary improvement in liquidity.

The current ratio significantly dropped to 0.05 in February 2023, highlighting a severe liquidity strain for KB Home during that period. Subsequently, there was a gradual recovery as it improved to 0.29 in November 2022 and 0.16 in August 2022. However, the ratio remained relatively low compared to industry benchmarks during these periods.

The current ratio improved significantly in the following quarters, reaching 0.73 in November 2021 and further climbing to 0.89 in August 2020, indicating a strengthening liquidity position for the company. However, it declined to 0.55 in May 2020 and 0.52 in February 2020, showing some instability in the short-term liquidity position.

Overall, the current ratio of KB Home has shown fluctuations over time, with periods of improvement and decline. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet its short-term obligations and manage liquidity effectively.