Service Corporation International (SCI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,007,970 | 2,954,060 | 2,820,070 | 2,519,070 | 2,470,200 |
| Inventory | US$ in thousands | 33,597 | 31,740 | 25,935 | 23,929 | 25,118 |
| Inventory turnover | 89.53 | 93.07 | 108.74 | 105.27 | 98.34 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,007,970K ÷ $33,597K
= 89.53
Service Corp. International's inventory turnover has seen a decreasing trend over the past five years, with the ratio declining from 98.34 in 2019 to 89.53 in 2023. This indicates that the company is selling its inventory at a slower rate compared to previous years. A high inventory turnover ratio is generally preferred as it signifies efficient management of inventory levels and quick conversion of inventory into sales. However, the decreasing trend in inventory turnover may suggest potential issues such as overstocking, slow-moving inventory, or declining sales, which could impact the company's profitability and liquidity. It would be important for Service Corp. International to further investigate the factors contributing to the decrease in inventory turnover and take appropriate actions to optimize its inventory management practices.
Peer comparison
Dec 31, 2023