KB Home (KBH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,882,670	3,810,140	3,830,130	3,766,480	3,695,460	3,660,800	3,490,610	3,291,000	3,134,320	3,019,480	2,841,730	2,886,860	2,748,180	2,665,770	2,565,310	2,490,350	2,443,100	2,383,120	2,262,230	2,195,210
ROE		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%	11.28%	10.72%	11.93%

February 29, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $603,342K ÷ $3,882,670K
= 15.54%

KB Home's return on equity (ROE) has shown a general trend of improvement over the past several quarters. The ROE has fluctuated within the range of 10.72% to 22.31% during the time period from May 31, 2019, to Feb 29, 2024.

The ROE peaked at 22.31% in November 2022 and has since experienced some minor fluctuations but has generally remained above 15%. This indicates that KB Home has been effectively generating profit from its shareholders' equity.

Overall, KB Home's ROE performance suggests that the company has been efficiently utilizing its equity to generate returns for shareholders. The consistent improvement in ROE over the period reflects positively on the company's profitability and operational effectiveness. Further analysis could delve into the factors driving these improvements and assess the sustainability of this trend.