Service Corporation International (SCI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.93 | 4.08 | 3.92 | 3.36 | 3.47 |
| Days of sales outstanding (DSO) | days | 8.23 | 8.72 | 8.59 | 9.34 | 9.66 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 12.15 | 12.80 | 12.51 | 12.70 | 13.13 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.93 + 8.23 – —
= 12.15
Service Corporation International's cash conversion cycle has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. The company's cash conversion cycle decreased from 13.13 days in 2020 to 12.15 days in 2024, indicating an improvement in its efficiency in managing cash flows.
A lower cash conversion cycle suggests that the company is able to convert its investments in inventory and accounts receivable into cash more quickly. This can be a positive sign of effective working capital management and potentially improved liquidity for the company.
Overall, Service Corporation International's decreasing cash conversion cycle over the five-year period reflects the company's ability to optimize its operational processes and enhance its cash flow management practices, which can have positive implications for its financial performance and stability.
Peer comparison
Dec 31, 2024