Service Corporation International (SCI)

Service Corporation International's current ratio has shown some fluctuations over the years, ranging from 0.45 to 0.67. This ratio indicates the company's ability to cover its short-term liabilities with its current assets, and an upward trend generally signals improved liquidity.

In contrast, the quick ratio has been more volatile, with a significant decline in 2023 to a negative value. This ratio excludes inventory from current assets, providing a more conservative measure of liquidity. The negative quick ratio in 2023 suggests potential issues with the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, also experienced a significant decline in 2023 to a negative value. This implies that Service Corporation International may have difficulties meeting its short-term obligations with its readily available cash holdings.

Overall, while the current ratio has shown some improvement in recent years, the quick and cash ratios indicate potential challenges in the company's short-term liquidity position, especially highlighted by the negative quick and cash ratios in 2023. Service Corporation International may need to closely monitor its liquidity management to ensure it can meet its financial commitments in the future.

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Additional liquidity measure

Service Corporation International's cash conversion cycle has shown a slight downward trend over the past five years, decreasing from 13.13 days as of December 31, 2020, to 12.15 days as of December 31, 2024. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is able to more efficiently manage its working capital and collect cash from its operations.

The decreasing trend in the cash conversion cycle suggests that Service Corporation International has been able to streamline its operations, improve inventory management, and accelerate the collection of receivables over the years. This can have positive implications for the company's liquidity and financial health, as a shorter cash conversion cycle means the company has quicker access to funds generated from its core business activities.

Overall, the improving trend in Service Corporation International's cash conversion cycle reflects effective working capital management and efficient cash flow generation, which can contribute to the company's financial stability and competitiveness in the market.