KB Home (KBH)
Return on total capital
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,179,380 | 6,633,010 | 5,505,970 | 3,956,120 | 348,175 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,810,140 | 3,660,800 | 3,019,480 | 2,665,770 | 2,383,120 |
| Return on total capital | 162.18% | 181.19% | 182.35% | 148.40% | 14.61% |
November 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,179,380K ÷ ($—K + $3,810,140K)
= 162.18%
Based on the provided data, KB Home's return on total capital has varied over the past five years. In November 2023, the return on total capital was 13.77%, representing a decrease from the previous year's figure of 19.55% in November 2022. However, compared to November 2021 and 2020, the return on total capital has shown improvement, with 14.87% and 8.19%, respectively. In November 2019, the return on total capital was 8.54%.
The return on total capital measures the efficiency and effectiveness of the company in generating profits from the total capital employed. The decreasing trend in recent years may indicate a potential decrease in the company's ability to generate profits relative to its capital base. It is important for investors and stakeholders to closely monitor this trend, as a declining return on total capital may raise concerns about the company's profitability and efficient use of capital resources.
Peer comparison
Nov 30, 2023