Service Corporation International (SCI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,099,780 | 4,108,660 | 4,143,140 | 3,511,510 | 3,230,780 |
| Property, plant and equipment | US$ in thousands | 2,480,100 | 2,350,550 | 2,252,160 | 2,133,660 | 2,065,430 |
| Fixed asset turnover | 1.65 | 1.75 | 1.84 | 1.65 | 1.56 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,099,780K ÷ $2,480,100K
= 1.65
The fixed asset turnover ratio for Service Corp. International has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
In 2023, the fixed asset turnover ratio was 0.91, which suggests that for every dollar invested in fixed assets, the company generated $0.91 in revenue. This represents a slight decrease from the previous year (0.96 in 2022).
Despite the decline in 2023, the company's fixed asset turnover ratio has generally been above 1.00 in 2021, which indicates that Service Corp. International was able to generate more revenue from its fixed assets than the value of those assets. This could imply effective management of fixed assets to drive sales and operational efficiency.
Furthermore, the ratios of 2020 (0.88) and 2019 (0.82) were lower, indicating a less efficient use of fixed assets in generating revenue during those years.
Overall, the analysis of Service Corp. International's fixed asset turnover ratio suggests that the company has experienced fluctuations in its efficiency in utilizing fixed assets to generate revenue over the past five years. Monitoring this ratio can provide insights into the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023