KB Home (KBH)

Current 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
Total current assets	US$ in thousands	385,100	218,900	528,700	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
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
Current ratio		1.00	0.26	0.50	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

November 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $385,100K ÷ $384,894K
= 1.00

KB Home's current ratio has fluctuated over the past several quarters, indicating varying levels of liquidity and short-term solvency. The current ratio stood at 0.55 as of February 29, 2020, indicating that the company had only 55 cents in current assets to cover each dollar of current liabilities.

The ratio improved to 0.89 by August 31, 2020, suggesting a better ability to meet its short-term obligations. However, there was a decline in the ratio to 0.16 by August 31, 2022, which may raise concerns about the company's liquidity position.

Subsequently, the ratio showed some recovery and reached 1.00 by November 30, 2024, indicating the company had sufficient current assets to cover its current liabilities. However, it is important to note the significant variations in the current ratio throughout the observed period, which may reflect fluctuations in the company's working capital management and financial health.