KB Home (KBH)

Financial leverage 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
Total assets	US$ in thousands	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	5,015,480	5,035,170	4,919,950
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
Financial leverage ratio		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	2.10	2.23	2.24

February 29, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,683,490K ÷ $3,882,670K
= 1.72

The financial leverage ratio of KB Home has demonstrated a slightly fluctuating trend over the past few quarters. The ratio has generally remained above 1, indicating that the company utilizes debt in its capital structure to finance its operations and investments.

The ratio peaked at 2.24 in November 2019 and has been gradually declining since then, although it has experienced some ups and downs. This suggests that KB Home may have reduced its reliance on debt for funding its activities over this period.

Despite the fluctuations, the financial leverage ratio has generally remained within a moderate range, which can be seen as a positive sign as it indicates a balanced approach to capital structure management.

Overall, the trend in KB Home's financial leverage ratio signals a cautious approach to debt usage, with the company maintaining a level of leverage that is manageable and in line with its operational and financial requirements.