Service Corporation International (SCI)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.08 | 3.92 | 3.36 | 3.47 | 3.71 |
| Days of sales outstanding (DSO) | days | 8.72 | 8.59 | 9.34 | 9.66 | 9.23 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 12.80 | 12.51 | 12.70 | 13.13 | 12.94 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.08 + 8.72 – —
= 12.80
Service Corp. International has demonstrated a consistent improvement in its cash conversion cycle over the last five years, with the cycle decreasing from -12.18 days in 2019 to -1.00 days in 2023. A negative cash conversion cycle indicates that the company has efficient working capital management, as it is able to collect cash from customers before paying its suppliers.
The decreasing trend in the cash conversion cycle suggests that the company has been able to streamline its operating processes, improve inventory turnover, and manage its receivables effectively. This can lead to better liquidity and cash flow generation for the company.
Overall, Service Corp. International's cash conversion cycle analysis indicates a healthy financial position and efficient management of working capital, which bodes well for the company's operational and financial performance.
Peer comparison
Dec 31, 2023