KB Home (KBH)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	655,018	614,715	607,319	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
Total stockholders’ equity	US$ in thousands	4,060,620	3,987,090	3,991,700	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
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%

November 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $655,018K ÷ $4,060,620K
= 16.13%

The return on equity (ROE) for KB Home has shown a fluctuating trend over the past several quarters. Starting at 12.22% in February 2020, the ROE remained relatively stable around the 12% mark until November 2020 when it dipped to 11.11%. However, there was a notable improvement in ROE in the subsequent quarters, reaching 20.34% by May 2022.

The ROE continued to increase steadily, peaking at 22.31% in November 2022 before slightly decreasing to 15.49% by November 2023. Despite this dip, the ROE remained above 15% until November 2024 at 16.13%.

Overall, KB Home's ROE demonstrates a positive trend with significant improvements in recent quarters, indicating that the company has been effectively utilizing shareholder equity to generate profits. Investors may view this as a positive sign of the company's financial performance and efficiency in generating returns for shareholders.