Service Corporation International (SCI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 221,557 | 191,938 | 268,626 | 230,857 | 186,276 |
| Short-term investments | US$ in thousands | -425,308 | 4,175,290 | 4,771,540 | 5,345,720 | 36,295 |
| Total current liabilities | US$ in thousands | 749,100 | 799,280 | 728,261 | 815,934 | 556,719 |
| Cash ratio | -0.27 | 5.46 | 6.92 | 6.83 | 0.40 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($221,557K
+ $-425,308K)
÷ $749,100K
= -0.27
Service Corp. International's cash ratio has fluctuated over the past five years, ranging from 0.27 to 0.39. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on external sources of funding.
In 2021, the cash ratio was at its highest at 0.39, suggesting that the company had a relatively higher level of cash reserves compared to its short-term liabilities. This could indicate a prudent approach to managing liquidity and financial stability.
However, the cash ratio decreased in 2022 to 0.27, indicating a lower level of cash available to cover short-term obligations. This could potentially signal a need to improve cash management practices or address any liquidity challenges the company may have been facing.
By the end of 2023, the cash ratio had improved to 0.33, showing some recovery in the company's liquidity position compared to the previous year. Overall, fluctuations in the cash ratio reflect changes in the company's cash position and its ability to meet short-term financial obligations. Management should continue to monitor and manage cash levels effectively to ensure ongoing liquidity and financial stability.
Peer comparison
Dec 31, 2023