KB Home (KBH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 98.54% | 98.52% | 98.48% | 98.49% | 98.48% | 98.27% | 98.29% | 98.28% | 98.30% | 98.70% | 98.57% | 98.50% | 98.38% | 81.51% | 63.09% | 40.97% | 19.09% | 19.00% | 18.69% | 18.45% |
| Operating profit margin | 97.07% | 97.03% | 96.96% | 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% |
| 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% |
| Net profit margin | 9.45% | 9.31% | 9.43% | 9.29% | 9.21% | 9.83% | 10.98% | 11.73% | 11.83% | 11.67% | 10.69% | 10.06% | 9.86% | 9.47% | 8.90% | 7.85% | 7.08% | 6.89% | 6.43% | 6.20% |
KB Home has shown a significant improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 18.45% in February 2020 to 98.54% in November 2024, indicating strong control over the cost of goods sold.
Similarly, the operating profit margin has shown consistent growth, rising from 73.16% in February 2020 to 97.07% in November 2024. This suggests that KB Home has effectively managed its operating expenses to generate higher profits from its core business activities.
The pretax margin has also shown an upward trend, increasing from 7.94% in February 2020 to 12.28% in November 2024. This indicates that the company has been able to generate more income before taxes relative to its total revenue.
The net profit margin, which reflects the actual profitability of the company after accounting for all expenses and taxes, has also improved over time, rising from 6.20% in February 2020 to 9.45% in November 2024. This indicates that KB Home has been able to enhance its bottom-line profitability through efficient cost management and revenue generation strategies.
Overall, the improving trend in profitability ratios demonstrates KB Home's ability to enhance operational efficiency, control costs, and drive higher profitability over the years.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 96.99% | 93.69% | 91.73% | 94.23% | 93.50% | 97.99% | 103.31% | 102.12% | 100.26% | 96.08% | 92.44% | 93.77% | 94.92% | 73.96% | 67.43% | 59.86% | 59.35% | 62.67% | 67.63% | 69.75% |
| Return on assets (ROA) | 9.44% | 8.99% | 8.92% | 9.03% | 8.88% | 9.98% | 11.75% | 12.40% | 12.28% | 11.51% | 10.17% | 9.73% | 9.68% | 8.63% | 7.56% | 6.15% | 5.53% | 6.05% | 6.01% | 5.91% |
| Return on total capital | 165.67% | 160.72% | 156.39% | 162.21% | 163.14% | 168.27% | 177.82% | 180.02% | 182.18% | 185.27% | 184.80% | 185.13% | 183.46% | 149.82% | 131.25% | 118.21% | 119.26% | 126.48% | 136.92% | 144.25% |
| Return on equity (ROE) | 16.13% | 15.42% | 15.21% | 15.54% | 15.49% | 17.13% | 20.22% | 21.86% | 22.31% | 22.19% | 20.34% | 19.21% | 18.70% | 17.48% | 14.72% | 12.14% | 11.11% | 12.21% | 12.17% | 12.22% |
KB Home has shown a consistently strong performance in terms of profitability ratios over the past few years. The Operating Return on Assets (Operating ROA) has been on an upward trend, increasing from 69.75% in February 2020 to 96.99% in November 2024. This ratio indicates that the company is generating significant operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has also shown growth, with a slight fluctuation but generally increasing from 5.91% in February 2020 to 9.44% in November 2024. This ratio reflects the company's ability to generate profits from its total assets.
The Return on Total Capital has demonstrated a positive performance, peaking at 185.27% in August 2022 before slightly decreasing to 165.67% in November 2024. This ratio shows the company's efficiency in generating returns from its total capital, including debt and equity.
Lastly, the Return on Equity (ROE) has shown a steady increase from 12.22% in February 2020 to 16.13% in November 2024. This indicates that KB Home is effectively utilizing its equity to generate profits for its shareholders.
Overall, KB Home's profitability ratios suggest a strong financial performance and efficient utilization of its assets and capital over the analyzed period.