KB Home (KBH)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	783,742	771,277	856,585	988,281	1,056,209	1,072,066	1,011,090	859,058	749,852	695,346	597,503	524,621	418,746	364,043	402,919	393,540	382,512	348,175	312,144	334,884
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
Pretax margin		12.07%	12.03%	12.83%	14.25%	15.33%	15.53%	15.23%	13.72%	12.54%	12.15%	11.39%	10.98%	9.86%	8.70%	8.86%	8.36%	7.94%	7.65%	7.19%	7.60%

February 29, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $783,742K ÷ $6,494,090K
= 12.07%

The pretax margin of KB Home has been relatively stable over the periods examined, ranging from 7.19% to 15.53%. The pretax margin represents the percentage of each dollar of revenue that the company retains as pre-tax profit after accounting for all operating expenses.

The company has shown a gradual increase in pretax margin from the low of 7.19% in May 2019 to the peak of 15.53% in February 2023 before trending downward slightly to 12.07% in February 2024. Generally, a higher pretax margin indicates that the company is more efficient in managing costs relative to its revenue.

Specific factors such as changes in revenue, costs of goods sold, operating expenses, and other income or expenses may have influenced the fluctuations in pretax margin during the periods under review. The company's ability to maintain a relatively stable pretax margin suggests effective cost management and profitability control even amidst changing market conditions.