Service Corporation International (SCI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.05% | 26.63% | 28.10% | 31.93% | 28.26% |
| Operating profit margin | 22.16% | 23.03% | 22.57% | 28.74% | 24.00% |
| Pretax margin | 16.13% | 17.28% | 18.37% | 25.23% | 18.85% |
| Net profit margin | 12.39% | 13.11% | 13.76% | 19.38% | 14.69% |
Service Corporation International's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The gross profit margin has seen an improvement from 28.26% in 2020 to 31.93% in 2021, but then declined to 26.05% by the end of 2024. This indicates that the company may be facing challenges in efficiently managing its cost of goods sold.
2. Operating Profit Margin: The operating profit margin also witnessed some variability over the years. It increased from 24.00% in 2020 to 28.74% in 2021, before decreasing to 22.16% by the end of 2024. This suggests fluctuations in the company's ability to control its operating expenses and generate profits.
3. Pretax Margin: The pretax margin showed a significant rise from 18.85% in 2020 to 25.23% in 2021, but then experienced a downward trend, reaching 16.13% in 2024. This indicates that despite higher revenues, the company's pre-tax profitability decreased due to higher expenses.
4. Net Profit Margin: The net profit margin followed a similar pattern, increasing from 14.69% in 2020 to 19.38% in 2021, but then declined to 12.39% by the end of 2024. This suggests that while the company was able to generate higher profits initially, its bottom line has weakened in recent years.
Overall, Service Corporation International's profitability ratios reflect a mixed performance, with improvements in certain years but a general trend of declining margins in later years. The company may need to focus on controlling costs and improving operational efficiency to sustain and enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.34% | 5.77% | 6.16% | 7.59% | 5.81% |
| Return on assets (ROA) | 2.98% | 3.29% | 3.75% | 5.12% | 3.55% |
| Return on total capital | 14.51% | 15.31% | 15.65% | 20.58% | 15.66% |
| Return on equity (ROE) | 30.91% | 34.86% | 33.79% | 42.05% | 29.43% |
Service Corporation International has shown a consistent improvement in its profitability ratios over the years.
The Operating return on assets (Operating ROA) has increased from 5.81% in 2020 to 7.59% in 2021, before slightly decreasing to 6.16% in 2022 and then stabilizing around 5.77% to 5.34% in the subsequent years. This indicates the company's ability to generate operating profits from its assets, although there was a slight decline in efficiency in 2022 and onwards.
The Return on assets (ROA) has also shown an upward trend, rising from 3.55% in 2020 to 5.12% in 2021, and then moderating to around 3.29% to 2.98% in the later years. This ratio signifies the company's ability to generate profits from its total assets, reflecting an overall positive trend in asset utilization.
Return on total capital has similarly improved, increasing from 15.66% in 2020 to 20.58% in 2021, before stabilizing between 14.51% to 15.65% in the subsequent years. This metric indicates the company's efficiency in generating returns from both debt and equity investments.
Return on equity (ROE) has exhibited solid growth, climbing from 29.43% in 2020 to a peak of 42.05% in 2021, before settling around 30% in the later years. This ratio reflects the company's ability to generate returns for its shareholders from their equity investments.
Overall, the profitability ratios of Service Corporation International demonstrate a positive performance, with improvements in profit generation and asset utilization, despite some fluctuations in certain ratios in the later years. It is important for investors to monitor these ratios to assess the company's financial health and performance over time.