Service Corporation International (SCI)

Liquidity ratios

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
Current ratio 0.52 0.52 0.55 0.62 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
Quick ratio 0.43 0.36 0.37 0.41 -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
Cash ratio 0.30 0.25 0.25 0.28 -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

The current ratio of Service Corporation International fluctuated over the analyzed periods, ranging from 0.42 to 0.85. While the current ratio improved in the second half of 2023 and early 2024, indicating a better ability to meet short-term liabilities, it decreased towards the end of 2024.

The quick ratio, on the other hand, showed significant variability, reaching both negative and very high values. The quick ratio exceeded 6 in multiple quarters, suggesting that the company had a substantial amount of highly liquid assets relative to current liabilities in those periods. However, the quick ratio fell to negative values in the late 2023, indicating potential liquidity issues.

The cash ratio of Service Corporation International also displayed fluctuations. It generally remained above 1, indicating the company had more than enough cash and cash equivalents to cover current liabilities in most quarters. However, the cash ratio showed a decreasing trend in late 2023, highlighting a potential need for improved cash management.

Overall, while the company maintained some level of liquidity throughout the analyzed periods, the fluctuations in the quick and cash ratios suggest a need for close monitoring and potential adjustments in liquidity management strategies to ensure sufficient short-term liquidity.

Additional liquidity measure

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
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

The cash conversion cycle of Service Corporation International has shown fluctuations over the given time period. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

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. Generally, a shorter cash conversion cycle indicates that the company is able to quickly generate cash from its operational activities.

The trend of the cash conversion cycle suggests that the company has made progress in managing its working capital efficiency, as it decreased from 12.56 days on March 31, 2020, to 12.15 days on December 31, 2024. This indicates that the company has improved its ability to convert investments in inventory into cash over time.

However, some fluctuations and deviations in the cash conversion cycle over the years may reflect changes in the company's operational efficiency, inventory management, and collection of receivables. It is important for Service Corporation International to continue monitoring and optimizing its working capital management to ensure a healthy cash conversion cycle that supports its financial health and growth objectives.