KB Home (KBH)

Quick 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
Cash	US$ in thousands	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	454,858	184,837	179,764
Short-term investments	US$ in thousands	—	—	—	—	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	14,374	9,162	8,346
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	43,300	43,300	44,304	—	—	—
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
Quick ratio		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	0.90	0.81	0.56	0.53	0.21	0.22

February 29, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($668,295K + $—K + $—K) ÷ $1,038,990K
= 0.64

The quick ratio of KB Home has shown fluctuations over the past few periods, ranging from as low as 0.19 to as high as 0.90. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In the most recent period, the quick ratio was at 0.64, indicating that KB Home may face challenges in meeting its immediate financial obligations. It is important for investors and creditors to monitor this ratio closely to assess the company's liquidity position and ability to weather any short-term financial pressures.

Overall, the trend in KB Home's quick ratio suggests some volatility in its liquidity position, emphasizing the importance of closely monitoring the company's ability to meet its short-term obligations in a timely manner.