Service Corporation International (SCI)

Short-term

Turnover ratios

Service Corporation International's activity ratios show efficient management of its resources over the years.

1. Inventory Turnover: The company has seen a consistent improvement in its inventory turnover ratio from 105.27 in 2020 to 92.91 in 2024. This indicates that the company is selling its inventory more frequently, which is a positive sign of efficient inventory management.

2. Receivables Turnover: The receivables turnover ratio has also shown an increasing trend from 37.78 in 2020 to 44.37 in 2024. This indicates that the company is collecting its receivables at a faster rate, demonstrating effective management of its accounts receivable.

3. Payables Turnover: The payables turnover ratio is not provided for any of the years, suggesting that data for this specific ratio is not available. This ratio is important in evaluating how quickly the company pays its suppliers.

4. Working Capital Turnover: Similarly, the working capital turnover ratio is not provided for any of the years. This ratio measures how efficiently the company is using its working capital to generate sales.

In conclusion, based on the available data, Service Corporation International appears to have good control over its inventory and receivables, as reflected in its improving inventory and receivables turnover ratios. The absence of data for payables and working capital turnover ratios hinders a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Service Corporation International's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH):
- The DOH measures how long, on average, Service Corporation International holds inventory before selling it.
- The trend shows a slight increase from 3.47 days in 2020 to 4.08 days in 2023, then a decrease to 3.93 days in 2024.
- A lower DOH is generally favorable as it indicates faster inventory turnover, but the slight increase in recent years may suggest the company is holding onto inventory for slightly longer periods.

2. Days of Sales Outstanding (DSO):
- The DSO represents the average number of days it takes for Service Corporation International to collect payment from its customers after a sale.
- The DSO has decreased from 9.66 days in 2020 to 8.23 days in 2024.
- A decrease in DSO indicates better efficiency in collecting receivables, which is positive for the company's cash flow and liquidity.

3. Number of Days of Payables:
- Unfortunately, the data provided does not include information on the number of days of payables.
- Typically, a longer period of payables suggests favorable terms for the company as it can hold onto cash longer, improving cash flow.

In summary, Service Corporation International has shown improvement in managing its inventory and collecting receivables over the years, as indicated by the decreasing trends in DOH and DSO. However, without data on payables, a comprehensive analysis of the company's overall efficiency in managing its working capital cannot be fully determined.

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Long-term

Service Corporation International's Fixed Asset Turnover has shown some fluctuation over the years, starting at 1.65 in 2020, increasing to 1.84 by the end of 2021, and then declining slightly to 1.75 in 2022. It further decreased to 1.65 by the end of 2023 and then to 1.62 by the end of 2024.

This indicates that the company's efficiency in generating revenue from its fixed assets improved initially before tapering off in the later years. The decline in fixed asset turnover could suggest either a decrease in sales relative to fixed assets or an increase in the value of fixed assets not being utilized effectively for revenue generation.

In comparison, the Total Asset Turnover ratio, which measures the company's ability to generate sales from all assets, shows a slight upward trend over the years. It stood at 0.24 in 2020, increased to 0.26 by the end of 2021, and continued to rise to 0.27 by the end of 2022. However, it then decreased to 0.25 in 2023 and fell back to 0.24 by the end of 2024.

The overall trend in Total Asset Turnover suggests that the company's ability to generate sales from all its assets improved initially before experiencing a dip. This could indicate changes in the company's asset base, sales volume, or operational efficiency.

Analyzing these long-term activity ratios together provides insight into how efficiently Service Corporation International is utilizing both its fixed and total assets to generate sales. The trends in these ratios can help stakeholders assess the company's operational efficiency and financial performance over the years.