KB Home (KBH)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	603,342	590,177	656,285	761,681	807,909	816,666	774,490	669,258	601,952	564,746	496,603	424,921	333,546	296,243	313,319	303,040	298,512	268,775	242,444	261,784
Total assets	US$ in thousands	6,683,490	6,648,360	6,576,990	6,483,020	6,514,100	6,651,930	6,730,590	6,579,480	6,188,330	5,835,920	5,756,350	5,618,930	5,426,780	5,356,440	5,177,430	5,042,000	5,052,830	5,015,480	5,035,170	4,919,950
ROA		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%	5.36%	4.82%	5.32%

February 29, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $603,342K ÷ $6,683,490K
= 9.03%

The Return on Assets (ROA) for KB Home has fluctuated over the past several periods, ranging from 4.82% to 12.40%. The ROA measures how efficiently the company is utilizing its assets to generate profits. A higher ROA indicates that the company is more effective in generating profits relative to its total assets.

The ROA has shown a general upward trend from May 2019 to May 2023, reaching a peak of 12.40% in February 2023. This improvement suggests that KB Home has been able to increase its profitability in relation to its asset base during this period.

However, there was a slight decline in the ROA in the most recent period, dropping to 9.03% in February 2024. This could be an indication of challenges in maintaining or further improving profitability relative to its asset base.

Overall, while the company has shown improvements in its ROA in recent years, it will be important for KB Home to continue focusing on efficient asset utilization to sustain and potentially enhance its profitability in the future.