KB Home (KB Home) EBIT : $744 Mil (TTM As of Feb. 2024)

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What is KB Home EBIT?

KB Home's earnings before interest and taxes (EBIT) for the three months ended in Feb. 2024 was $162 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2024 was $744 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. KB Home's annualized ROC % for the quarter that ended in Feb. 2024 was 9.88%. KB Home's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 14.41%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. KB Home's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 12.33%.

KB Home EBIT Historical Data

The historical data trend for KB Home's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KB Home EBIT Chart

KB Home Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

EBIT

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342.14

327.86

676.19

1,055.03

742.53

KB Home Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
EBIT	Get a 7-Day Free Trial															160.91	208.10	185.00	188.52	162.20

Competitive Comparison of KB Home's EBIT

For the Residential Construction subindustry, KB Home's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

KB Home's EV-to-EBIT Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where KB Home's EV-to-EBIT falls into.

KB Home EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $744 Mil.

KB Home (NYSE:KBH) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

KB Home's annualized ROC % for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	648.792 * ( 1 - 20.61% )	/	( (5169.07	+	5255.099)	/ 2 )
=	515.0759688	/	5212.0845
=	9.88 %

where

	Invested Capital		(Q: Nov. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6648.362	-	751.95	-	( 727.342	-	max(0, 810.86	-	6246.512	+	727.342	))
=	5169.07

	Invested Capital		(Q: Feb. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6683.492	-	760.098	-	( 668.295	-	max(0, 820.167	-	6281.94	+	668.295	))
=	5255.099

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

KB Home's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2023		Q: Feb. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	648.792	/	( ( (113.034 + max(4341.448, 0))	+	(112.477 + max(4438.75, 0)) )	/	2 )
=	648.792	/	( ( 4454.482	+	4551.227 )	/	2 )
=	648.792	/	4502.8545
=	14.41 %

where Working Capital is:

	Working Capital		(Q: Nov. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.783	+	5133.646	+	15.879000000001)	-	(751.95	+	58.91	+	0)
=	4341.448

	Working Capital		(Q: Feb. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.545	+	5243.581	+	12.790999999999)	-	(760.098	+	60.069	+	1.1368683772162E-13)
=	4438.75

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

KB Home's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Feb. 2024 )
	=	743.824	/	6030.527
	=	12.33 %

KB Home EBIT Related Terms

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KB Home (KB Home) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » KB Home (NYSE:KBH) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

KBH:Mexico KBH:Germany KBH:Germany

Address

10990 Wilshire Boulevard, Floor 7, Los Angeles, CA, USA, 90024

Website

https://www.kbhome.com

KB Home is an American construction company that focuses on residential construction. The company builds single-family homes and communities across Arizona, California, Colorado, Florida, Nevada, Texas, North Carolina, Idaho and the Washington, D.C., area. KB Home operates in several markets and focuses on first-time and move-up homebuyers. The company follows a built-to-order model that offers personalized homes at attainable prices based on the market location. The company also invests in land acquisition and development to support future building activities and is also engaged in financial services operations which includes providing mortgage banking services through its joint venture with a third party.

Executives

William R Hollinger	officer: SVP & Chief Accounting Officer	10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Brian J Woram	officer: EVP and General Counsel	C/O H&R BLOCK, ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Melissa Lora	director	C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Jeff Kaminski	officer: EVP & Chief Financial Officer	26555 NORTHWESTERN HIGHWAY, SOUTHFIELD MI 48034
Jeffrey T Mezger	director, officer: President and CEO	10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Jose Miguel Barras	director	C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Albert Z Praw	officer: EVP, Real Estate & Bus. Dev.	10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Thomas W. Gilligan	director	C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Brian R Niccol	director	1 GLEN BELL WAY, IRVINE CA 92618
Robert V. Mcgibney	officer: EVP and Co-COO	C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Jodee A Kozlak	director	1000 NICOLLET MALL, TPS-3255, MINNEAPOLIS MN 55403
Matthew W Mandino	officer: EVP & Chief Operating Officer	C/O KB HOME, 10990 WILSHIRE BLVD., 7TH FLOOR, LOS ANGELES CA 90024
Kevin Paul Eltife	director	C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Arthur Reginald Collins	director	3911 LORCOM LANE, ARLINGTON VA 22207
James C. Weaver	director	C/O KB HOME, 10990 WILSHIRE BLVD., 7TH FLOOR, LOS ANGELES CA 90024