KB Home (KBH)

Pretax margin

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	771,277	1,072,070	695,346	364,043	348,175
Revenue	US$ in thousands	6,410,630	6,900,180	5,719,860	4,183,170	4,552,750
Pretax margin		12.03%	15.54%	12.16%	8.70%	7.65%

November 30, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $771,277K ÷ $6,410,630K
= 12.03%

The pretax margin of KB Home has shown fluctuations over the past five years. The margin was 12.03% in 2023, a decrease from the previous year's 15.53%. However, it remained relatively higher compared to the 12.15% in 2021 and the 8.70% in 2020. The 2019 pretax margin was 7.65%, indicating a noticeable improvement over the years. This trend suggests some variability in the company's ability to generate profits before accounting for taxes, which may be influenced by factors such as operating expenses, revenue growth, and changes in the tax environment.