KB Home (KBH)

Operating return on assets (Operating ROA)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Operating income	US$ in thousands	6,179,380	6,633,010	5,505,970	3,956,120	4,306,320
Total assets	US$ in thousands	6,648,360	6,651,930	5,835,920	5,356,440	5,015,480
Operating ROA		92.95%	99.72%	94.35%	73.86%	85.86%

November 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $6,179,380K ÷ $6,648,360K
= 92.95%

To analyze KB Home's operating return on assets (operating ROA) over the past five years, we can observe a fluctuating trend. In 2023, the operating ROA stands at 11.16%, showing a decrease from the previous year's 15.85%. This decrease indicates a decline in the company's ability to generate earnings from its assets through its core operations. Comparing this to the 2021 figure of 11.58%, it appears that the company's operating ROA has not yet fully recovered to its prior level. Looking back to 2020 and 2019, the operating ROA was 6.12% and 6.79%, respectively, signifying an upward trend in this metric.

The fluctuating trend in KB Home's operating ROA suggests that the company's operating efficiency and profitability in generating earnings from its assets have varied over the years. It is important for investors and stakeholders to closely monitor the factors affecting this ratio to assess the company's financial performance and sustainability.