Service Corporation International (SCI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 944,255 | 927,316 | 1,190,680 | 842,770 | 666,613 |
| Total assets | US$ in thousands | 16,355,400 | 15,066,000 | 15,691,200 | 14,515,400 | 13,677,400 |
| Operating ROA | 5.77% | 6.16% | 7.59% | 5.81% | 4.87% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $944,255K ÷ $16,355,400K
= 5.77%
Service Corp. International's operating return on assets (operating ROA) has shown variations over the past five years. The operating ROA decreased from 7.43% in 2021 to 5.71% in 2023. This decline indicates that the company may be less efficient in generating operating profits from its assets in the most recent year compared to two years ago.
However, it is worth noting that despite this decrease, the operating ROA in 2023 is still higher than the values reported in 2020 and 2019, indicating an overall improvement in efficiency over a longer period. The company's operating ROA was at its lowest at 4.63% in 2019 and has steadily increased since then, reaching its peak at 7.43% in 2021.
Overall, the fluctuation in Service Corp. International's operating ROA suggests some level of variability in the company's ability to generate operating profits relative to its assets. Further analysis of the company's operational strategies and financial performance may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023