KB Home (KBH)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	6,396,110	6,313,280	6,560,840	6,816,130	6,770,870	6,786,430	6,552,970	6,171,470	5,892,300	5,632,200	4,274,374	3,013,036	1,740,780	798,640	863,850	880,417	888,802	839,486	778,583	785,447
Revenue (ttm)	US$ in thousands	6,494,090	6,410,630	6,676,670	6,934,560	6,889,300	6,903,780	6,638,950	6,261,150	5,981,980	5,724,930	5,243,990	4,775,903	4,248,983	4,183,183	4,547,603	4,709,380	4,817,210	4,552,753	4,342,683	4,407,243
Gross profit margin		98.49%	98.48%	98.27%	98.29%	98.28%	98.30%	98.70%	98.57%	98.50%	98.38%	81.51%	63.09%	40.97%	19.09%	19.00%	18.69%	18.45%	18.44%	17.93%	17.82%

February 29, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $6,396,110K ÷ $6,494,090K
= 98.49%

The gross profit margin of KB Home has shown strong consistency and stability in recent quarters, ranging between 98.27% to 98.49%. This indicates that the company is effectively managing its direct costs related to production and sales, resulting in a high percentage of revenue retained as gross profit. However, there was a significant drop in the gross profit margin in the third quarter of 2021, with a steep decline from 98.50% in May 2021 to 81.51% in August 2021. This sudden decrease may suggest temporary challenges or changes in the cost structure during that period. Overall, KB Home has displayed a robust gross profit margin performance, reflecting efficient cost control and pricing strategies in its operations.