Company: HOVVB
Filing Date: 2025-02-19
Form Type: CORRESP
Source: 0001753926-25-000257
Chunk: 2

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-19
Form: CORRESP
Chunk 2
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 in the homebuilding industry. The C ompany uses this metric for benchmarking purposes as a measure of operational performance compared to our peers in the homebuilding industry. T he Company respectfully acknowledges the Staff’s comment and advises that , in its future filings with the Commission, it will further clarify and expand its disclosure around the use of adjusted EBIT ROI consistent with the foregoing, including to highlight that each of the components, namely adjusted EBIT and Adjusted Investment, are non-GAAP measures and to identify their most directly comparable GAAP financial measures . Reconcile your statement that the most directly comparable GAAP financial measure to your calculation of adjusted EBIT ROI is net income given that such measure appears to be a ratio. In that regard, we note your discussion of your trailing twelve return on equity ("ROE") on page 3. To the extent you view ROE as the most directly comparable GAAP financial ratio, please tell us how the Company determined that such measure is considered the most directly comparable ratio as calculated using the most directly comparable GAAP financial measures ; and Response The Company respectfully advises the Staff that the Company does not view the trailing twelve-month return on equity (“ROE”) as the most directly comparable GAAP financial ratio to adjusted EBIT ROI. Reflective of the Staff’s comment and as shown in Exhibit A , the Company believes that the most directly comparable GAAP financial measure to adjusted EBIT ROI is the ratio of net income to total inventories. Notwithstanding the prior point, please revise your disclosures to also provide the ratio as calculated using the most directly comparable GAAP financial measures on a trailing twelve-month period . Response In response to the Staff’s comment, t he Company will revise its disclosures in its future filings with the Commission to provide the ratio of net income (on a trailing twelve-month period) to total inventories (five quarter average) as the most directly comparable GAAP financial measure consistent with the presentation in Exhibit A hereto. If the Staff has any questions concerning this response letter or requires further information, p lease do not hes itate to call me at (732) 383-2698 or e - mail me at BOConnor@KHOV.COM .

| Sincerely,                  |                      |                         |
| HOVNANIAN ENTERPRISES, INC. |                      |                         |
| By:                         | /s/ Brad G. O’Connor |                         |
|                             | Name:                | Brad G. O’Connor        |
|                             | Title:               | Chief Financial Officer