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KB Home (NYSE:KBH) Financial Strength

: 5 (As of Aug. 2022)
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KB Home has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate KB Home's interest coverage with the available data. KB Home's debt to revenue ratio for the quarter that ended in Aug. 2022 was 0.28. As of today, KB Home's Altman Z-Score is 3.49.


KB Home (NYSE:KBH) Financial Strength Competitive Comparison

For the Residential Construction subindustry, KB Home's Financial Strength, along with its competitors' market caps and Financial Strength 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 (NYSE:KBH) Financial Strength Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Financial Strength distribution charts can be found below:

* The bar in red indicates where KB Home's Financial Strength falls into.



KB Home Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

KB Home's Interest Expense for the months ended in Aug. 2022 was $0 Mil. Its Operating Income for the months ended in Aug. 2022 was $330 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2022 was $1,707 Mil.

KB Home's Interest Coverage for the quarter that ended in Aug. 2022 is

GuruFocus does not calculate KB Home's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

KB Home's Debt to Revenue Ratio for the quarter that ended in Aug. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Aug. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(350 + 1707.464) / 7379.58
=0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

KB Home has a Z-score of 3.49, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.49 is strong.

* 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.


KB Home  (NYSE:KBH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

KB Home has the Financial Strength Rank of 5.


KB Home Financial Strength Related Terms

Thank you for viewing the detailed overview of KB Home's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


KB Home (NYSE:KBH) Business Description

KB Home logo
Traded in Other Exchanges
Address
10990 Wilshire Boulevard, Floor 7, Los Angeles, CA, USA, 90024
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, 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.
Executives
Mcgibney Robert V. officer: EVP and Co-COO C/O KB HOME 10990 WILSHIRE BOULEVARD, 7TH FLOOR LOS ANGELES CA 90024
Niccol Brian R director 1 GLEN BELL WAY IRVINE CA 92618
Kozlak Jodee A director 1000 NICOLLET MALL, TPS-3255 MINNEAPOLIS MN 55403
Eltife Kevin Paul director C/O KB HOME 10990 WILSHIRE BOULEVARD, 7TH FLOOR LOS ANGELES CA 90024
Collins Arthur Reginald director 3911 LORCOM LANE ARLINGTON VA 22207
Mandino Matthew W officer: EVP & Chief Operating Officer C/O KB HOME 10990 WILSHIRE BLVD., 7TH FLOOR LOS ANGELES CA 90024
Weaver James C. director C/O KB HOME 10990 WILSHIRE BLVD., 7TH FLOOR LOS ANGELES CA 90024
Dominguez Dorene director C/O CIT GROUP INC, GENERAL COUNSEL 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Gabriel Stuart A director 155 N. LAKE AVENUE PASADENA CA 91101
Patton Robert L. Jr. director C/O KB HOME 10990 WILSHIRE BLVD., 7TH FLOOR LOS ANGELES CA 90024
Franklin Nicholas S officer: EVP, Strategic Operations C/O KB HOME 10990 WILSHIRE BOULEVARD, 7TH FLOOR LOS ANGELES CA 90024
Nogales Luis G director
Bollenbach Stephen F director C/O TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Mccaffery Michael G director 2788 SAN TOMAS EXPRESSWAY SANTA CLARA CA 95051
Wood Michael M. director C/O KB HOME 10990 WILSHIRE BLVD., 7TH FLOOR LOS ANGELES CA 90024

KB Home (NYSE:KBH) Headlines

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