KB Home (KBH)

Gross profit margin

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Gross profit	US$ in thousands	6,822,260	6,295,000	6,766,600	5,612,910	798,640
Revenue	US$ in thousands	6,942,600	6,410,630	6,900,180	5,719,860	4,183,170
Gross profit margin		98.27%	98.20%	98.06%	98.13%	19.09%

November 30, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $6,822,260K ÷ $6,942,600K
= 98.27%

Based on the data provided, KB Home's gross profit margin has shown a remarkable improvement over the years, increasing from 19.09% as of November 30, 2020, to 98.27% as of November 30, 2024. This upward trend indicates that KB Home has been able to effectively manage its cost of goods sold and increase its gross profit relative to its revenue.

The substantial increase in the gross profit margin demonstrates the company's ability to generate more profit from each dollar of sales, which could be attributed to factors such as improved operational efficiency, cost controls, pricing strategies, or product mix.

It is important to note that a high gross profit margin, as seen in KB Home's case, generally indicates a strong competitive position within its industry. However, it would be beneficial to further analyze other financial metrics and performance indicators to gain a more comprehensive understanding of the company's overall financial health and operational efficiency.