KB Home (KBH)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	6,298,140	6,215,930	6,445,010	6,697,700	6,652,440	6,669,090	6,467,000	6,081,800	5,802,630	5,539,470	4,257,394	3,788,907	3,248,587	3,179,307	3,244,517	3,409,694	3,524,124	3,265,215	3,087,317	2,050,803
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		162.21%	163.14%	168.27%	177.82%	180.02%	182.18%	185.27%	184.80%	185.13%	183.46%	149.82%	131.25%	118.21%	119.26%	126.48%	136.92%	144.25%	137.01%	136.47%	93.42%

February 29, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,298,140K ÷ ($—K + $3,882,670K)
= 162.21%

The return on total capital for KB Home has exhibited fluctuations over the past 20 periods, ranging from a low of 93.42% to a high of 185.27%. The trend shows variability with periodic spikes and dips, indicating shifts in the company's efficiency in generating returns relative to its total capital. In recent periods, the return on total capital has generally shown an upward trajectory, reaching levels above 160%, reflecting improved profitability and effective utilization of capital resources. It is important for stakeholders to further evaluate the factors driving these fluctuations to assess the sustainability and underlying drivers of KB Home's return on total capital.