KB Home (KBH)

Operating 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
Operating income (ttm)	US$ in thousands	6,298,140	6,215,930	6,445,010	6,697,700	6,652,440	6,669,090	6,467,000	6,081,800	5,802,630	5,539,470	4,257,394	3,788,907	3,248,587	3,179,307	3,244,517	3,409,694	3,524,124	3,265,215	3,080,288	2,034,711
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
Operating profit margin		96.98%	96.96%	96.53%	96.58%	96.56%	96.60%	97.41%	97.14%	97.00%	96.76%	81.19%	79.33%	76.46%	76.00%	71.35%	72.40%	73.16%	71.72%	70.93%	46.17%

February 29, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $6,298,140K ÷ $6,494,090K
= 96.98%

KB Home's operating profit margin has remained consistently high over the past eight quarters, ranging from 96.53% to 97.41%. This indicates that the company is efficient in managing its operating expenses relative to its operating income. However, there was a notable decrease in the operating profit margin in the last three quarters of 2021, with margins as low as 76.00%. It's important to note that the operating profit margin rebounded significantly in the following quarters, reaching levels above 96%, suggesting improved operating efficiency. The company's ability to maintain a high operating profit margin demonstrates its strong operational performance and effective cost management strategies.