KB Home (KBH)
Interest coverage
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,701,920 | 6,179,380 | 6,633,010 | 5,505,970 | 3,956,120 |
| Interest expense | US$ in thousands | — | 107,086 | 704 | 120,514 | 124,147 |
| Interest coverage | — | 57.70 | 9,421.89 | 45.69 | 31.87 |
November 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,701,920K ÷ $—K
= —
The interest coverage ratio is a significant financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. Looking at the data for KB Home's interest coverage ratio over the years, we observe a fluctuating trend.
In November 2020, KB Home had an interest coverage ratio of 31.87, showing that the company generated sufficient operating income to cover its interest expenses comfortably.
By November 2021, the interest coverage ratio improved to 45.69, indicating a further strengthening of the company's ability to pay its interest obligations.
The interest coverage ratio took a significant leap by November 2022, standing at 9,421.89. Such an exceptionally high ratio suggests an extraordinary level of operating income relative to interest expenses.
As of November 2023, the interest coverage ratio remained strong at 57.70, indicating that KB Home continued to have a healthy buffer to cover its interest payments.
However, the data for November 2024 is marked as "—," which means no data is available for that period. It is important to dig deeper and understand the reasons behind this missing data point to assess the company's financial health accurately.
Overall, the trend in KB Home's interest coverage ratio reflects a generally positive financial position, with occasional fluctuations that merit further analysis for a comprehensive understanding of the company's ability to meet its interest obligations.
Peer comparison
Nov 30, 2024