Operator
Thank you. The next question is from the line of Michael Dahl from the Credit-Suisse Group. Please go ahead with your question.
Michael Dahl, Credit-Suisse Group
Hi, thanks for taking my questions. Jeff, I guess, what we expect, margins, it’s an environment you have acknowledged is increasingly difficult. 20% gross margin, you have introduced a new focus on return on capital, which is not necessarily gross margin dependent. So, what makes 20% the right long term target for KBH? I guess what I am getting at is that if you were able to hit your two times inventory turn with 80% margin, how do you view that trade off rate now?
Jeff Kaminski, Executive Vice President and Chief Financial Officer
It’s a balance certainly, Mike. We refer to our bottom line and all the components as a property equation and if you can hit an 18% gross but your SG&A is 8 or 9, that’s the same thing as a 20% gross and a higher SG&A. So, at any city where we have a balance of those two, and we continue to chase the leverage we can pull on all of those areas, not just one or the other. Typically, in the past, in order to achieve our return on investing capital targets we had to have a bottom line around 8% to 10%. How do you get to the bottom line and then, say, in to the returns? Our [inaudible 41:23] to back and think of the components I walked through. We had to get to a scale because of our cost structure, debt structure, everything. We had to get to a higher scale in order to achieve profitability. And now that we have done that and we can mine the cash out of this scale, our message is that we can drive our growth through cash generation in our current business. And therefore, we think we can grow our returns while at the same time improving our profitability, going forward.
Michael Dahl, Credit-Suisse Group
Okay. Thanks. And second question, I think Jeff K has mentioned that Texas is 16% of communities today, and you think about growth plans for Houston, 16%. If you think about growth plans for 2015, would that number, that percentage be expected to increase? If so, I guess, would some of those communities where you have reported to have seen issues, how many of them are early on enough [inaudible 41:27 – 30] that you could turn it off quickly in response? Thank you.
Jeff Kaminski, Executive Vice President and Chief Financial Officer
Right, on the community count growth expectations for 2015, Jeff mentioned earlier that we have been pretty measured with continued investment in Texas and while we intend to continue investing up in communities, I think on a net basis, we would see a route [inaudible 42:52] community count in Texas in total and Houston in particular, in 2015. So, we are taking a measured approach. We will see what happens and develops in market. I certainly would not expect our exposure there to increase in 2015, and hold right around that 8% or 9% of our total company revenues as we are going to the year.
