KB Home (KBH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| 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 |
KB Home's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently been at 0.00, suggesting that the company operates with minimal debt in relation to its assets and capital structure.
However, the financial leverage ratio has shown some fluctuations over the periods, ranging from 1.72 to 2.24. This ratio peaked at 2.24 in the third quarter of 2019 and has since fluctuated within the range. A higher financial leverage ratio indicates higher financial risk as the company relies more on debt to finance its operations.
Overall, KB Home's solvency ratios reflect a conservative approach to debt management, with a low reliance on leverage to fund its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 35.21 | 38.59 | 47.73 | — | 709.22 | 9,473.14 | 1,282.12 | 631.48 | 346.43 | 234.32 | 163.57 | 122.97 | 87.69 | 87.87 | 88.59 | 111.46 | 178.27 | 214.70 | 406.01 | 503.76 |
Based on the provided data, the interest coverage ratio for KB Home fluctuates significantly over the given time period. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to cover interest payments.
In general, KB Home has shown a strong interest coverage ratio, with the ratio ranging from 35.21 to a notably high 9,473.14. The substantial increase in the interest coverage ratio from May 2023 to August 2023, peaking at 47.73, indicates a significant improvement in the company's ability to cover its interest expenses with its operating income.
However, there seems to be a missing data point for the interest coverage ratio in the most recent reporting period (May 2023). The significant fluctuations in the interest coverage ratio, particularly the exceptionally high ratio in November 2022 and May 2020, may be due to various factors such as changes in interest rates, the company's profitability, or the capital structure.
Overall, KB Home's interest coverage ratio demonstrates a generally strong ability to meet its interest obligations with its earnings, although the fluctuating nature of the ratio should be monitored to assess the company's ongoing financial health and stability.