KB Home (KBH)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.20% | 98.06% | 98.13% | 19.09% | 18.44% |
| Operating profit margin | 96.39% | 96.13% | 96.26% | 94.57% | 94.59% |
| Pretax margin | 12.03% | 15.54% | 12.16% | 8.70% | 7.65% |
| Net profit margin | 9.21% | 11.84% | 9.87% | 7.08% | 5.90% |
Based on the profitability ratios of KB Home, we can observe a general trend of improvement over the past five years. The gross profit margin has increased from 18.53% in 2019 to 21.53% in 2023, indicating the company's improved efficiency in managing production costs and generating gross profit from its residential construction business.
Similarly, the operating profit margin has displayed a steady increase, reaching 11.57% in 2023 from 7.48% in 2019, reflecting KB Home's ability to effectively control operating expenses and enhance operational efficiency.
Moreover, the pretax margin has exhibited a positive trend, demonstrating an increase from 7.65% in 2019 to 12.03% in 2023. This suggests that the company has been successful in managing its income tax expenses and boosting its pretax profitability.
Furthermore, KB Home's net profit margin has also shown improvement over the years, rising from 5.87% in 2019 to 9.14% in 2023. This indicates the company's ability to effectively manage its overall expenses and generate higher profits after considering all costs and taxes.
In conclusion, the profitability ratios of KB Home reflect a positive trend, indicating improved cost management, operational efficiency, and overall profitability over the five-year period.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 92.95% | 99.72% | 94.35% | 73.86% | 85.86% |
| Return on assets (ROA) | 8.88% | 12.28% | 9.68% | 5.53% | 5.36% |
| Return on total capital | 162.18% | 181.19% | 182.35% | 148.40% | 14.61% |
| Return on equity (ROE) | 15.49% | 22.31% | 18.70% | 11.11% | 11.28% |
Based on the provided data, KB Home's profitability ratios reveal a generally positive trend over the past five years. The operating return on assets (Operating ROA) remained relatively stable at around 11% - 16% from 2019 to 2023, indicating the company's ability to generate profits from its assets. The return on assets (ROA) also displayed an upward trend, reaching 8.81% in 2023 from 5.33% in 2019, demonstrating improved efficiency in asset utilization.
Furthermore, the return on total capital and return on equity (ROE) both exhibited consistent growth over the same period. The return on total capital increased from 8.54% in 2019 to 13.77% in 2023, highlighting the company's capacity to generate returns for all capital providers. Similarly, ROE rose from 11.21% in 2019 to 15.38% in 2023, indicating improved profitability from the perspective of common shareholders.
Overall, KB Home's profitability ratios demonstrate a positive trajectory, suggesting effective management of assets and capital to generate profits for the company and its shareholders.