KB Home (KBH)
Debt-to-capital ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
November 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,060,620K)
= 0.00
Based on the provided data, KB Home's debt-to-capital ratio has been consistently at 0.00 from November 30, 2020, to November 30, 2024.
A debt-to-capital ratio of 0.00 indicates that KB Home has not used any debt to finance its operations or growth, and its capital structure consists entirely of equity. This could suggest that the company has a conservative financial strategy, preferring to rely on internal funds or equity financing rather than taking on debt.
A debt-to-capital ratio of 0.00 may also indicate a strong financial position with low financial risk as the company is not burdened by interest payments and debt obligations. However, it's important to note that a very low debt-to-capital ratio could also mean missed opportunities for leveraging debt for potential growth or expansion.
In conclusion, KB Home's consistent debt-to-capital ratio of 0.00 over the period suggests a financially conservative approach with a strong equity base, but it is essential for the company to consider the optimal mix of debt and equity financing to maximize shareholder value and potential future growth opportunities.
Peer comparison
Nov 30, 2024