Service Corporation International (SCI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.63% | 28.10% | 31.93% | 28.26% | 23.54% |
| Operating profit margin | 23.03% | 22.57% | 28.74% | 24.00% | 20.63% |
| Pretax margin | 17.28% | 18.37% | 25.23% | 18.85% | 14.37% |
| Net profit margin | 13.11% | 13.76% | 19.38% | 14.69% | 11.44% |
Service Corp. International's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: This ratio measures the company's ability to generate revenue after accounting for the cost of goods sold. Service Corp. International's gross profit margin has decreased from 31.46% in 2021 to 26.63% in 2023, indicating a decline in efficiency in managing production costs.
2. Operating Profit Margin: This ratio reflects the company's ability to generate profit from its core operations. While the operating profit margin has remained relatively stable over the years, it decreased slightly from 28.13% in 2021 to 22.79% in 2023. This decrease suggests that the company may be facing challenges in controlling operating expenses.
3. Pretax Margin: The pretax margin shows how much profit the company is generating before taxes. Service Corp. International's pretax margin has fluctuated, with a notable drop from 25.23% in 2021 to 17.28% in 2023. This decrease could be attributed to changes in operating expenses and other factors affecting profitability.
4. Net Profit Margin: This ratio indicates the company's profitability after all expenses, including taxes, have been deducted. Service Corp. International's net profit margin has also fluctuated, but overall it has shown an increasing trend, reaching 13.11% in 2023. This suggests that the company has been able to improve its bottom-line performance despite challenges in other profitability ratios.
In conclusion, while Service Corp. International has experienced fluctuations in its profitability ratios, its net profit margin has shown improvement over the years. The company may need to focus on managing production costs and operating expenses to enhance overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.77% | 6.16% | 7.59% | 5.81% | 4.87% |
| Return on assets (ROA) | 3.29% | 3.75% | 5.12% | 3.55% | 2.70% |
| Return on total capital | 15.31% | 15.65% | 20.58% | 15.66% | 12.18% |
| Return on equity (ROE) | 34.86% | 33.79% | 42.05% | 29.43% | 20.27% |
Service Corp. International's profitability ratios show a mixed trend over the past five years.
- Operating return on assets (Operating ROA) has fluctuated slightly, ranging from 4.63% in 2019 to 7.43% in 2021, but has slightly decreased to 5.71% in 2023. This ratio indicates that the company is generating operating income relative to its asset base.
- Return on assets (ROA) has also shown variability, with a low of 2.70% in 2019, peaking at 5.12% in 2021, and settling at 3.29% in 2023. ROA reflects the company's overall profitability in relation to its total assets.
- Return on total capital has exhibited an increasing trend, from 11.68% in 2019 to a peak of 19.70% in 2021 before slightly declining to 14.86% in 2023. This ratio demonstrates the company's ability to generate profits in relation to the total capital employed in the business.
- Return on equity (ROE) has shown steady growth over the years, starting at 20.27% in 2019, peaking at 42.05% in 2021, and settling at 34.86% in 2023. ROE indicates the profitability of the company for its shareholders' equity.
In conclusion, Service Corp. International's profitability ratios depict a mixed performance, with some ratios showing positive growth trends while others experiencing fluctuations. It is important for the company to focus on sustaining and improving profitability metrics to ensure long-term financial health and shareholder value.