Service Corporation International (SCI)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 944,255 | 869,090 | 849,526 | 837,243 | 927,316 | 1,058,817 | 1,159,715 | 1,184,334 | 1,190,676 | 1,177,669 | 1,096,536 | 1,033,034 | 842,770 | 798,269 | 703,641 | 671,411 | 666,613 | 598,378 | 602,096 | 613,945 |
| Total assets | US$ in thousands | 16,355,400 | 15,683,100 | 15,678,600 | 15,343,900 | 15,066,000 | 14,491,500 | 14,702,000 | 15,457,100 | 15,691,200 | 15,370,200 | 15,344,400 | 14,788,300 | 14,515,400 | 13,787,100 | 13,487,900 | 12,715,300 | 13,677,400 | 13,316,300 | 13,360,300 | 13,079,100 |
| Operating ROA | 5.77% | 5.54% | 5.42% | 5.46% | 6.16% | 7.31% | 7.89% | 7.66% | 7.59% | 7.66% | 7.15% | 6.99% | 5.81% | 5.79% | 5.22% | 5.28% | 4.87% | 4.49% | 4.51% | 4.69% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $944,255K ÷ $16,355,400K
= 5.77%
Service Corp. International's operating return on assets (ROA) has shown a declining trend from the fourth quarter of 2022 to the fourth quarter of 2023. The operating ROA decreased consistently from 6.09% in Q4 2022 to 5.71% in Q4 2023. This indicates that the company's ability to generate operating income from its assets has weakened over time.
Although there was a slight increase in Q1 2023 compared to the previous quarter, the overall trend remained downward. The highest operating ROA was observed in the second quarter of 2022 at 7.76%, followed by a gradual decline in the subsequent quarters.
It is essential for investors and stakeholders to monitor this trend closely as a declining operating ROA could signal inefficiencies in the company's operations or resource utilization. Management may need to enhance operational efficiency, optimize asset utilization, or explore new revenue streams to improve the company's profitability and return on assets in the future.
Peer comparison
Dec 31, 2023