KB Home (KBH)

Based on the solvency ratios of KB Home, we observe the following trends:

1. Debt-to-assets ratio: KB Home shows a consistently low debt-to-assets ratio of 0.00 over the five-year period from November 30, 2020, to November 30, 2024. This indicates that the company's assets are primarily financed through equity rather than debt, which is a positive sign for solvency.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remains at 0.00 throughout the five-year period. This ratio reflects the proportion of capital that is financed through debt, and KB Home's consistent 0.00 ratio indicates a low reliance on debt for its capital structure.

3. Debt-to-equity ratio: KB Home maintains a debt-to-equity ratio of 0.00 across all years evaluated. This implies that the company's level of debt in comparison to its equity is negligible, further emphasizing its strong financial position and low financial risk.

4. Financial leverage ratio: The financial leverage ratio shows a declining trend from 2.01 in November 30, 2020, to 1.71 in November 30, 2024. This downward trend indicates that KB Home is reducing its reliance on debt financing over the years, which is generally viewed positively as it signifies a lower risk of financial distress.

Overall, based on the solvency ratios provided, KB Home appears to have a strong financial position with low debt levels and a conservative capital structure, indicating good financial stability and sustainability in the long term.

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Coverage ratios

The interest coverage ratio is a significant financial metric that indicates a company's ability to meet its interest obligations using its earnings. In the case of KB Home, the interest coverage ratios, as per the provided data, show notable changes over the years.

- As of November 30, 2020, KB Home's interest coverage ratio was 31.87. This indicates that the company's earnings were 31.87 times higher than its interest expenses during that period, reflecting a solid ability to cover its interest payments.

- The interest coverage ratio improved further by November 30, 2021, reaching 45.69. This increase suggests that KB Home's earnings were even more comfortable in meeting its interest obligations compared to the previous year.

- Interestingly, by November 30, 2022, the interest coverage ratio spiked significantly to 9,421.89. Such an exceptionally high ratio could be a result of a significant increase in earnings or a decrease in interest expenses. This could potentially indicate an unusually favorable financial position with respect to interest payments.

- Subsequently, on November 30, 2023, KB Home's interest coverage ratio decreased to 57.70. Despite the decline, the ratio remains at a level that signifies the company's ability to comfortably cover its interest costs with its earnings.

- The data for November 30, 2024, shows that the interest coverage ratio is not available (denoted as '—'). This lack of information makes it difficult to assess the company's financial position with regards to its ability to cover interest payments during that period.

In conclusion, KB Home has demonstrated varying levels of strength in covering its interest expenses over the years, with some periods showing robust ratios. However, it is essential for investors and analysts to consider additional factors and trends in the company's financial performance to gain a more comprehensive understanding of its financial health.