Service Corporation International (SCI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.93 | 4.10 | 3.98 | 4.22 | 4.08 | 4.18 | 4.23 | 4.34 | 3.92 | 3.95 | 3.82 | 3.66 | 3.36 | 3.26 | 3.36 | 3.63 | 3.45 | 3.75 | 3.84 | 4.09 |
| Days of sales outstanding (DSO) | days | 8.23 | 7.12 | 7.68 | 7.97 | 8.72 | 7.54 | 7.58 | 9.15 | 8.59 | 7.65 | 8.16 | 9.00 | 9.34 | 8.97 | 8.31 | 8.64 | 9.66 | 8.61 | 8.66 | 8.47 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 12.15 | 11.22 | 11.66 | 12.19 | 12.80 | 11.72 | 11.81 | 13.49 | 12.51 | 11.60 | 11.99 | 12.66 | 12.70 | 12.23 | 11.67 | 12.27 | 13.11 | 12.36 | 12.50 | 12.56 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.93 + 8.23 – —
= 12.15
The cash conversion cycle of Service Corporation International has shown fluctuations over the past few years based on the provided data. The cycle represents the number of days it takes for a company to convert its investments in inventory and other resources back into cash.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 11.22 days on September 30, 2024, to a high of 13.49 days on March 31, 2023. Overall, the trend seems to show some variability but generally a fluctuating pattern, with some slight improvements seen in certain periods.
It is essential to monitor the cash conversion cycle as it indicates how efficiently the company manages its working capital. A shorter cycle signifies that the company is efficient in converting its resources into cash, while a longer cycle can indicate potential inefficiencies in managing working capital. Service Corporation International should focus on optimizing its inventory turnover, accounts receivable collections, and accounts payable management to potentially improve its cash conversion cycle and overall financial performance.
Peer comparison
Dec 31, 2024