KB Home (KBH)

Pretax margin

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	850,918	802,815	789,919	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
Revenue (ttm)	US$ in thousands	6,930,090	6,604,180	6,438,580	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
Pretax margin		12.28%	12.16%	12.27%	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%

November 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $850,918K ÷ $6,930,090K
= 12.28%

The pretax margin of KB Home has shown a generally positive trend over the past few years, starting at 7.94% on February 29, 2020, and reaching 12.28% on November 30, 2024. There were fluctuations in the pretax margin during this period, with some quarters showing slight decreases, such as May 31, 2022, and February 28, 2023. However, overall, there was a noticeable improvement in the pretax margin.

The company's pretax margin peaked at 15.53% on November 30, 2022, and has been relatively stable around the 12% mark in recent quarters. This indicates that KB Home has been effectively managing its operating expenses and generating a higher level of profitability before taking into account taxes.

The increase in pretax margin over the years suggests that KB Home has been successful in controlling costs, increasing operational efficiency, or generating higher revenues. A higher pretax margin indicates that the company is more profitable and efficient in its operations. Investors and analysts may view this positive trend in pretax margin favorably as it reflects improved financial performance and potential for sustainable growth.