Service Corporation International (SCI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 218,766 | 221,557 | 191,938 | 268,626 | 230,857 |
| Short-term investments | US$ in thousands | — | -1,950,570 | 4,175,290 | 4,771,540 | 5,345,720 |
| Receivables | US$ in thousands | 94,341 | 97,939 | 96,681 | 106,051 | 92,939 |
| Total current liabilities | US$ in thousands | 723,839 | 749,100 | 799,280 | 728,261 | 815,934 |
| Quick ratio | 0.43 | -2.18 | 5.58 | 7.07 | 6.95 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($218,766K
+ $—K
+ $94,341K)
÷ $723,839K
= 0.43
The quick ratio of Service Corporation International has shown varying trends over the years.
In 2020, the quick ratio was 6.95, indicating a strong ability to meet short-term obligations with liquid assets. This high ratio suggests a healthy liquidity position.
By 2021, the quick ratio improved slightly to 7.07, reflecting a further strengthening of the company's liquidity position. This is a positive sign as it shows the company's ability to cover its short-term liabilities with highly liquid assets.
In 2022, there was a decrease in the quick ratio to 5.58, but it still remains at a relatively healthy level. This ratio indicates that the company may have slightly fewer liquid assets compared to its short-term liabilities, but it is not a major cause for concern.
However, in 2023, the quick ratio has decreased significantly to -2.18. This negative ratio suggests that the company may have insufficient liquid assets to cover its short-term liabilities. A negative quick ratio raises concerns about the company's ability to meet its immediate financial obligations.
By 2024, the quick ratio has further declined to 0.43, indicating a continued deterioration in the company's liquidity position. This low ratio suggests that there may be significant challenges in meeting short-term obligations with liquid assets.
Overall, the quick ratio trend for Service Corporation International shows fluctuations, with periods of strong liquidity position followed by declines. It will be important for the company to closely monitor its liquidity levels and take appropriate measures to ensure it maintains a healthy liquidity position to meet its short-term obligations.
Peer comparison
Dec 31, 2024