Service Corporation International (SCI)
Quick ratio
| 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 | US$ in thousands | 221,557 | 172,710 | 172,516 | 157,831 | 191,938 | 167,965 | 206,242 | 300,556 | 268,626 | 406,947 | 436,796 | 243,726 | 230,857 | 220,304 | 222,234 | 176,261 | 186,276 | 194,654 | 243,684 | 153,694 |
| Short-term investments | US$ in thousands | -425,308 | 4,048,970 | 4,124,130 | — | 4,175,290 | 3,930,910 | 4,092,120 | — | 4,771,540 | 4,610,970 | 5,785,650 | 4,424,280 | 5,345,720 | 3,567,540 | 3,645,680 | — | 3,842,330 | 3,658,490 | 3,697,470 | 3,600,640 |
| Receivables | US$ in thousands | 97,939 | 84,118 | 84,012 | 100,864 | 96,681 | 86,471 | 93,479 | 103,034 | 106,051 | 99,996 | 89,972 | 89,590 | 92,939 | 79,980 | 76,963 | 75,064 | 81,671 | 74,031 | 82,261 | 81,811 |
| Total current liabilities | US$ in thousands | 749,100 | 712,872 | 688,333 | 767,399 | 799,280 | 706,588 | 715,111 | 775,205 | 728,261 | 724,262 | 691,492 | 841,782 | 815,934 | 622,134 | 606,825 | 587,294 | 556,719 | 563,417 | 614,472 | 604,543 |
| 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 |
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 fluctuation over the past eight quarters. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.
In Q4 2023, the quick ratio was 0.62, an improvement from the previous quarter's 0.59. This suggests that the company had $0.62 in liquid assets available to cover each $1 of current liabilities, indicating a slightly stronger short-term liquidity position.
Comparing Q4 2023 to Q1 2023, a notable increase in the quick ratio from 0.38 to 0.62 indicates a significant improvement in the company's ability to cover its short-term obligations with liquid assets. This improvement is a positive sign for the company's liquidity management.
However, the quick ratio's decline from Q1 2022 (0.55) to Q2 2023 (0.42) and Q2 2022 (0.46) to Q3 2023 (0.43) suggests a downward trend in the company's short-term liquidity position during those periods. The quick ratio falling below 1 indicates that the company may have had difficulty meeting its short-term obligations with its readily available liquid assets.
Overall, while the quick ratio has experienced fluctuations, the company's recent improvement indicates a strengthening liquidity position. It is important for Service Corp. International to continue monitoring and managing its liquidity effectively to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023