Service Corporation International (SCI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 97,939 | 96,681 | 106,051 | 92,939 | 81,671 |
| Total current liabilities | US$ in thousands | 749,100 | 799,280 | 728,261 | 815,934 | 556,719 |
| Quick ratio | -0.14 | 5.58 | 7.07 | 6.95 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($221,557K
+ $-425,308K
+ $97,939K)
÷ $749,100K
= -0.14
The quick ratio of Service Corp. International has shown some fluctuation over the past five years, ranging from 0.40 in 2022 to 0.62 in 2023. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets.
A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term debt obligations with its current liquid assets alone. In this case, Service Corp. International's quick ratio has generally been below 1, suggesting a potential liquidity concern.
The improvement in the quick ratio from 2022 to 2023, where it increased to 0.62, indicates that the company had a higher level of liquid assets relative to its current liabilities in 2023 compared to the previous year. However, it is important to note that the quick ratio is still below 1, indicating that the company may still face challenges in meeting its short-term obligations solely using its current liquid assets.
Overall, the trend in Service Corp. International's quick ratio shows some variability, and the company may need to focus on managing its liquidity effectively to ensure it can comfortably meet its short-term financial obligations.
Peer comparison
Dec 31, 2023