Service Corporation International (SCI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 933,084 | 947,709 | 927,041 | 1,195,800 | 824,893 |
| Long-term debt | US$ in thousands | 4,751,450 | 4,649,160 | 4,251,080 | 3,901,300 | 3,514,180 |
| Total stockholders’ equity | US$ in thousands | 1,678,000 | 1,541,260 | 1,673,190 | 1,909,440 | 1,752,750 |
| Return on total capital | 14.51% | 15.31% | 15.65% | 20.58% | 15.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $933,084K ÷ ($4,751,450K + $1,678,000K)
= 14.51%
Service Corporation International's return on total capital has seen some fluctuations over the years.
As of December 31, 2020, the return on total capital was 15.66%, which increased to 20.58% by December 31, 2021, indicating improved efficiency in generating returns from the company's total capital. However, there was a slight decline in the return on total capital to 15.65% as of December 31, 2022, followed by a further decrease to 15.31% by December 31, 2023.
The most recent data point, as of December 31, 2024, shows a return on total capital of 14.51%, which represents a decrease compared to the previous year. This downward trend may suggest potential challenges in effectively utilizing the company's total capital to generate returns for its shareholders.
Overall, while there have been fluctuations in Service Corporation International's return on total capital over the years, it is essential for the company to focus on optimizing capital efficiency to sustain or improve its profitability in the future.
Peer comparison
Dec 31, 2024