Service Corporation International (SCI)
Receivables 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 |
| Receivables | US$ in thousands | 97,939 | 96,681 | 106,051 | 92,939 | 81,671 |
| Receivables turnover | 41.86 | 42.50 | 39.07 | 37.78 | 39.56 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,099,780K ÷ $97,939K
= 41.86
Service Corp. International's receivables turnover has experienced fluctuations over the past five years. The receivables turnover ratio indicates how efficiently the company is collecting outstanding receivables from customers. A higher turnover ratio is generally preferable as it signifies that the company is collecting receivables quickly.
In 2023, the receivables turnover ratio decreased to 18.63 from 39.62 in 2022, which may indicate that the company took longer to collect receivables compared to the previous year. However, it is essential to note that receivables turnover can vary depending on industry and company-specific factors.
Further analysis should be conducted to understand the reasons behind the fluctuation in the receivables turnover ratio, such as changes in credit policies, customer payment behavior, or economic conditions. Monitoring receivables turnover over time can provide insights into the company's liquidity and effectiveness in managing its accounts receivable.
Peer comparison
Dec 31, 2023