Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. KB Home's annualizedNet Income for the quarter that ended in Feb. 2024 was $555 Mil. KB Home's average total tangible assets for the quarter that ended in Feb. 2024 was $6,666 Mil. Therefore, KB Home's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2024 was 8.32%.
The historical rank and industry rank for KB Home's Return-on-Tangible-Asset or its related term are showing as below:
KBH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.72 Med: 5.52 Max: 23.1
Current: 9.17
During the past 13 years, KB Home's highest Return-on-Tangible-Asset was 23.10%. The lowest was 1.72%. And the median was 5.52%.
KBH's Return-on-Tangible-Asset is ranked better than 77.57% of 107
companies
in the Homebuilding & Construction industry
Industry Median: 4.24
vs KBH: 9.17
KB Home Return-on-Tangible-Asset Historical Data
The historical data trend for KB Home's Return-on-Tangible-Asset 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.
Competitive Comparison of KB Home's Return-on-Tangible-Asset
For the Residential Construction subindustry, KB Home's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where KB Home's Return-on-Tangible-Asset falls into.
KB Home Return-on-Tangible-Asset Calculation
KB Home's annualized Return-on-Tangible-Asset for the fiscal year that ended in Nov. 2023 is calculated as:
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2024) net income data.
KB Home (NYSE:KBH) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
KB Home Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of KB Home's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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