Service Corporation International (SCI)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.67 0.64 0.47 0.42 0.45 0.48 0.51 0.59 0.61 0.79 0.85 0.46 0.46 0.59 0.63 0.61 0.67 0.63 0.64 0.48
Quick ratio -0.14 6.04 6.36 0.34 5.58 5.92 6.14 0.52 7.07 7.07 9.13 5.65 6.95 6.22 6.50 0.43 7.38 6.97 6.55 6.35
Cash ratio -0.27 5.92 6.24 0.21 5.46 5.80 6.01 0.39 6.92 6.93 9.00 5.55 6.83 6.09 6.37 0.30 7.24 6.84 6.41 6.21

Service Corp. International's liquidity ratios, as evidenced by the current ratio, have shown a general downward trend over the past eight quarters, indicating potential challenges in meeting short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has consistently been below 1, suggesting a potential strain on the company's liquidity.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also declined over the quarters, indicating that the company may struggle to meet its short-term liabilities without relying on inventory sales.

The cash ratio, which represents the company's ability to cover its current liabilities with its cash and equivalents only, has also demonstrated a decreasing trend, further highlighting liquidity concerns. Despite a slight improvement in cash ratio in Q3 and Q4 of 2022, it has deteriorated since then.

Overall, Service Corp. International's liquidity ratios suggest a trend of weakening liquidity position, pointing to potential challenges in meeting short-term financial obligations. Management may need to closely monitor and address these liquidity concerns to ensure the company's financial stability and ability to withstand unforeseen challenges.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 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 12.94 12.41 13.18 13.13

The cash conversion cycle of Service Corp. International has shown variability over the quarters analyzed.

In Q4 2023, the company operated with a negative cash conversion cycle of -1.00 days, indicating that it had a more efficient cash management system, implying that it received payments from customers before needing to pay suppliers.

In Q3 2023, the cash conversion cycle increased to 23.48 days, suggesting that the company took longer to convert its investments in inventory and other resources into cash.

In Q2 and Q1 2023, the cash conversion cycle remained relatively stable at around 11-13 days, indicating that the company was able to manage its cash flow within a reasonable timeframe.

Comparing the latest periods with the same periods in the previous year, there was a significant improvement in Q4 2023 compared to Q4 2022, with the cycle shifting from negative to positive. This change may imply alterations in the company's operating or financial processes impacting its liquidity management.

Overall, consistent monitoring and management of the cash conversion cycle will be crucial for Service Corp. International to ensure efficient utilization of resources and sustained financial health.