KB Home (KBH)
Debt-to-capital ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
November 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,810,140K)
= 0.00
The debt-to-capital ratio of KB Home has exhibited a decreasing trend over the past five years, indicating an improvement in the company's capital structure. The ratio decreased from 0.42 in 2019 to 0.31 in 2023. This suggests that the company has reduced its reliance on debt financing in relation to its total capital, which may enhance its financial stability and flexibility. A lower debt-to-capital ratio generally signifies lower financial risk and a healthier balance sheet. It appears that KB Home has effectively managed its debt levels relative to its capital base, which could potentially enhance investor confidence and support sustainable long-term growth.
Peer comparison
Nov 30, 2023