Service Corporation International (SCI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 947,709 | 927,041 | 1,195,800 | 824,893 | 650,100 |
| Long-term debt | US$ in thousands | 4,649,160 | 4,251,080 | 3,901,300 | 3,514,180 | 3,513,530 |
| Total stockholders’ equity | US$ in thousands | 1,541,260 | 1,673,190 | 1,909,440 | 1,752,750 | 1,823,310 |
| Return on total capital | 15.31% | 15.65% | 20.58% | 15.66% | 12.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $947,709K ÷ ($4,649,160K + $1,541,260K)
= 15.31%
Service Corp. International's return on total capital has shown a fluctuating trend over the past five years. The company's return on total capital was 14.86% at the end of 2023, a slight decrease from 15.15% in the previous year. This decline follows a notable increase from 15.12% in 2020 to 19.70% in 2021.
The fluctuations in return on total capital suggest that the company's efficiency in generating returns from its total capital base has varied in recent years. While the 2021 peak demonstrates an improvement in capital utilization, the subsequent decrease in 2023 indicates a potential challenge in maintaining consistent returns.
Analyzing the trend of return on total capital can provide insights into Service Corp. International's ability to effectively allocate its resources and generate profits. Further examination and comparison with industry benchmarks may help in evaluating the company's overall financial performance and efficiency in utilizing its total capital.
Peer comparison
Dec 31, 2023