KB Home (KBH)
Financial leverage ratio
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,936,170 | 6,648,360 | 6,651,930 | 5,835,920 | 5,356,440 |
| Total stockholders’ equity | US$ in thousands | 4,060,620 | 3,810,140 | 3,660,800 | 3,019,480 | 2,665,770 |
| Financial leverage ratio | 1.71 | 1.74 | 1.82 | 1.93 | 2.01 |
November 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,936,170K ÷ $4,060,620K
= 1.71
The financial leverage ratio of KB Home has been showing a gradual decline over the past five years, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 2.01 in November 2020 to 1.71 in November 2024. This trend suggests that KB Home has been improving its financial stability by reducing its debt levels relative to its equity. A lower financial leverage ratio typically indicates lower financial risk and a stronger financial position for the company. Overall, the decreasing trend in the financial leverage ratio of KB Home is a positive signal for investors and stakeholders, reflecting improved financial health and risk management by the company over the past five years.
Peer comparison
Nov 30, 2024