KB Home (KBH)

Net profit margin

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Net income	US$ in thousands	655,018	590,177	816,666	564,746	296,243
Revenue	US$ in thousands	6,942,600	6,410,630	6,900,180	5,719,860	4,183,170
Net profit margin		9.43%	9.21%	11.84%	9.87%	7.08%

November 30, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $655,018K ÷ $6,942,600K
= 9.43%

Based on the data provided, KB Home's net profit margin has shown a generally increasing trend over the past five years. The net profit margin increased from 7.08% in November 2020 to 9.87% in November 2021, demonstrating improved profitability. Subsequently, there was a significant jump to 11.84% in November 2022, indicating a strong performance in generating profits relative to its revenue.

However, there was a slight decline in the net profit margin to 9.21% in November 2023, possibly due to changes in operating expenses or other factors impacting the company's bottom line. Despite this slight dip, the net profit margin rebounded to 9.43% in November 2024, showing resilience in maintaining profitability.

Overall, the increasing trend in KB Home's net profit margin suggests effective cost management, pricing strategies, and operational efficiency, contributing to the company's ability to generate profits from its revenue streams over the years.