KB Home (KBH)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

February 29, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,882,670K)
= 0.00

The debt-to-capital ratio for KB Home has consistently been reported as 0.00 in the financial statements over the past several quarters. This indicates that the company has not been utilizing debt as a means of financing its operations, as the ratio measures the proportion of debt used in relation to the total capital (debt + equity) of the company. A debt-to-capital ratio of 0.00 suggests that the company is primarily funding its operations through equity rather than debt. It may reflect a conservative approach to capital structure and financial risk management by avoiding excessive debt levels. However, it is important to note that while a low or zero debt-to-capital ratio can be beneficial in terms of financial stability and reduced interest expense, it may also limit the company's ability to leverage debt for potential growth opportunities in the future.