KB Home (KBH)

Net 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
Net income (ttm)	US$ in thousands	603,342	590,177	656,285	761,681	807,909	816,666	774,490	669,258	601,952	564,746	496,603	424,921	333,546	296,243	313,319	303,040	298,512	268,775	242,444	261,784
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
Net profit margin		9.29%	9.21%	9.83%	10.98%	11.73%	11.83%	11.67%	10.69%	10.06%	9.86%	9.47%	8.90%	7.85%	7.08%	6.89%	6.43%	6.20%	5.90%	5.58%	5.94%

February 29, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $603,342K ÷ $6,494,090K
= 9.29%

The net profit margin of KB Home has demonstrated fluctuations over the past several quarters, ranging from a low of 5.58% in May 2019 to a high of 11.83% in November 2022. The margin measures the company's profitability by indicating how much of each dollar of revenue translates into profit after all expenses are deducted.

The trend shows that the net profit margin has generally been on an upward trajectory from February 2021 to May 2023, reaching its peak at 11.83% in November 2022. However, there was a slight decrease in the margin in the most recent quarter, with the latest reported figure at 9.29% in February 2024.

The net profit margin above 10% indicates healthy profitability, while margins below this level may raise concerns about the company's ability to control costs and generate profits. It is essential for KB Home to maintain a consistent and competitive net profit margin to ensure sustainable growth and shareholder value.