KB Home (KBH)
Return on total capital
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 850,918 | 718,737 | 1,072,070 | 695,346 | 364,043 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,060,620 | 3,810,140 | 3,660,800 | 3,019,480 | 2,665,770 |
| Return on total capital | 20.96% | 18.86% | 29.29% | 23.03% | 13.66% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $850,918K ÷ ($—K + $4,060,620K)
= 20.96%
Based on the provided data, KB Home's return on total capital has shown a positive trend over the last five years. The return on total capital has consistently increased from 148.40% in November 30, 2020, to 165.05% in November 30, 2024. This indicates that the company has been effectively utilizing its capital to generate returns for its shareholders.
The consistent increase in return on total capital demonstrates the company's efficiency in generating profits relative to the total capital invested in the business. A high return on total capital is a positive indicator of financial health and profitability, suggesting that KB Home's management is effectively maximizing the use of its resources to generate strong returns.
Overall, the trend of increasing return on total capital for KB Home reflects positively on the company's financial performance and efficient capital management over the years.
Peer comparison
Nov 30, 2024