Service Corporation International (SCI)

Short-term

Turnover ratios

The analysis of Service Corp. International's activity ratios reveals the following:

Inventory Turnover:
The inventory turnover ratio for Service Corp. International has been relatively stable over the past eight quarters, ranging from 84.04 to 93.07. This indicates that the company efficiently manages its inventory levels and quickly turns its inventory into sales. A higher inventory turnover ratio is generally preferred as it indicates that the company is effectively selling its products.

Receivables Turnover:
Service Corp. International's receivables turnover has varied significantly over the past two years, with values ranging from 18.63 to 48.18. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers. The fluctuation in receivables turnover may indicate changes in the company's credit policies or the creditworthiness of its customers.

Payables Turnover:
The data provided only includes payables turnover for Q4 2022 and Q1 2022, with values of 16.60 and 14.79, respectively. The payable turnover ratio measures how quickly a company pays its suppliers. A higher payables turnover ratio suggests that the company is effectively managing its accounts payable. However, limited data points make it difficult to draw meaningful conclusions about Service Corp. International's payables turnover trend.

Working Capital Turnover:
Unfortunately, no data is available for the working capital turnover ratio for Service Corp. International across the provided periods. This ratio typically measures the efficiency of a company's working capital management in generating sales. The absence of data for this ratio restricts the comprehensive analysis of the company's overall working capital efficiency.

In conclusion, Service Corp. International demonstrates solid inventory turnover and varying receivables turnover ratios, while limited data availability hinders a detailed analysis of payables turnover and working capital turnover.

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Average number of days

Service Corp. International's Days of Inventory on Hand (DOH) has shown a slight increase over the past two quarters, from 3.92 days in Q4 2022 to 4.34 days in Q1 2023. This indicates that the company is taking slightly longer to sell its inventory, which may be a cause for concern as it could tie up capital and increase storage costs.

The Days of Sales Outstanding (DSO) for Service Corp. International have fluctuated significantly over the past two quarters, ranging from 7.58 days in Q2 2023 to 19.60 days in Q4 2023. This inconsistency could suggest issues with the company's accounts receivable management, potentially impacting cash flow and liquidity.

In terms of the Number of Days of Payables, Service Corp. International has shown an increase in the time it takes to pay its suppliers, from 21.99 days in Q4 2022 to 24.68 days in Q1 2023. This could potentially indicate strained relationships with suppliers or cash flow constraints.

Overall, these activity ratios suggest that Service Corp. International may be facing challenges in managing its inventory, accounts receivable, and payables efficiently, which could impact its overall financial performance and working capital management. Monitoring and improving these ratios could help enhance the company's operational efficiency and financial health.

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Long-term

Service Corp. International's long-term activity ratios show the efficiency with which the company utilizes its fixed assets and total assets to generate revenue. The fixed asset turnover ratio has been gradually decreasing over recent quarters, indicating a decline in the company's ability to generate sales from its fixed assets. This may suggest that the company is not effectively utilizing its fixed assets to drive revenue.

On the other hand, the total asset turnover ratio has remained relatively stable around 0.26 to 0.28, showcasing the company's ability to generate revenue relative to its total assets. While this ratio is lower compared to the fixed asset turnover ratio, it indicates that Service Corp. International is efficient in generating sales from its total assets, including both fixed and current assets.

Overall, the trend in these ratios suggest that while the company may be struggling to maximize the revenue generated from its fixed assets, it is maintaining a relatively stable efficiency in utilizing its total assets to drive sales. Service Corp. International may need to focus on improving the utilization of its fixed assets to enhance its overall long-term profitability and efficiency.