KB Home (KBH)
Return on equity (ROE)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 655,018 | 590,177 | 816,666 | 564,746 | 296,243 |
| Total stockholders’ equity | US$ in thousands | 4,060,620 | 3,810,140 | 3,660,800 | 3,019,480 | 2,665,770 |
| ROE | 16.13% | 15.49% | 22.31% | 18.70% | 11.11% |
November 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $655,018K ÷ $4,060,620K
= 16.13%
Over the past five years, KB Home has demonstrated a fluctuating trend in return on equity (ROE). In November 2020, the ROE stood at 11.11%, indicating the company generated an 11.11% return on shareholder equity. Over the subsequent years, there was a notable increase in ROE, reaching 18.70% in November 2021, 22.31% in November 2022 - the highest point in the period under review. However, in November 2023, the ROE dropped to 15.49%, before showing a slight recovery to 16.13% in November 2024.
The increasing trend in ROE from 2020 to 2022 is a positive sign, suggesting that KB Home efficiently utilized its shareholders' equity to generate higher returns. However, the decline in ROE in 2023 might raise some concerns about the company's ability to maintain its profitability levels. It is essential for stakeholders to further investigate the factors influencing these fluctuations in ROE to assess the company's overall financial performance and strategic decisions.
Peer comparison
Nov 30, 2024