KB Home (KBH)
Financial leverage ratio
| Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,936,170 | 6,839,880 | 6,805,680 | 6,683,490 | 6,648,360 | 6,576,990 | 6,483,020 | 6,514,100 | 6,651,930 | 6,730,590 | 6,579,480 | 6,188,330 | 5,835,920 | 5,756,350 | 5,618,930 | 5,426,780 | 5,356,440 | 5,177,430 | 5,042,000 | 5,052,830 |
| Total stockholders’ equity | US$ in thousands | 4,060,620 | 3,987,090 | 3,991,700 | 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 |
| Financial leverage ratio | 1.71 | 1.72 | 1.70 | 1.72 | 1.74 | 1.72 | 1.72 | 1.76 | 1.82 | 1.93 | 2.00 | 1.97 | 1.93 | 2.03 | 1.95 | 1.97 | 2.01 | 2.02 | 2.02 | 2.07 |
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 relatively stable over the past few years, ranging between 1.70 and 2.07. This ratio measures the company's level of debt in comparison to its equity, indicating the extent to which KB Home is relying on debt to finance its operations and growth.
Overall, a lower financial leverage ratio suggests that the company is relying more on equity financing rather than debt, which can be seen as a positive sign of financial health and stability. In the case of KB Home, we observe that the ratio has been gradually declining from 2.07 in February 2020 to 1.71 in November 2024. This downward trend may indicate that the company is reducing its reliance on debt financing over time.
It is important to note that a financial leverage ratio below 1 indicates that the company has more equity than debt, which is generally considered favorable. KB Home's ratio consistently staying below 2 also signals that the company has a conservative approach to leverage, balancing its debt levels with equity to maintain a healthy financial structure.
The slight fluctuations in the financial leverage ratio of KB Home over the years reflect changes in the company's capital structure and financing decisions. Investors and stakeholders can use this ratio as a key indicator of KB Home's financial risk, solvency, and overall stability in the industry.
Peer comparison
Nov 30, 2024