Service Corporation International (SCI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 933,084 | 916,723 | 924,613 | 936,694 | 947,709 | 874,345 | 853,156 | 836,977 | 927,041 | 1,055,899 | 1,166,496 | 1,189,264 | 1,195,797 | 1,181,594 | 1,074,605 | 1,016,868 | 824,893 | 778,871 | 692,851 | 652,622 |
| Long-term debt | US$ in thousands | 4,751,450 | 4,595,970 | 4,688,660 | 4,613,200 | 4,649,160 | 4,511,530 | 4,452,370 | 4,327,790 | 4,251,080 | 4,127,410 | 3,954,480 | 3,962,940 | 3,901,300 | 3,759,970 | 3,772,450 | 3,439,100 | 3,514,180 | 3,584,510 | 3,573,710 | 3,535,750 |
| Total stockholders’ equity | US$ in thousands | 1,678,000 | 1,627,180 | 1,539,580 | 1,590,600 | 1,541,260 | 1,630,430 | 1,645,140 | 1,621,710 | 1,673,190 | 1,677,200 | 1,839,350 | 1,842,750 | 1,909,440 | 1,941,900 | 1,918,140 | 1,850,710 | 1,752,750 | 1,743,070 | 1,754,280 | 1,751,090 |
| Return on total capital | 14.51% | 14.73% | 14.85% | 15.10% | 15.31% | 14.24% | 13.99% | 14.07% | 15.65% | 18.19% | 20.13% | 20.48% | 20.58% | 20.72% | 18.88% | 19.22% | 15.66% | 14.62% | 13.00% | 12.34% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a general increasing trend over the period from March 31, 2020, to December 31, 2021, peaking at 20.72% on September 30, 2021. This indicates the company's ability to generate profits from the total capital employed in its operations. However, starting from the first quarter of 2022, the return on total capital began to decline gradually, falling to 14.51% by December 31, 2024.
The highest return on total capital achieved during the period was 20.72% on September 30, 2021, while the lowest was recorded at 13.00% on June 30, 2020. The company's ability to maintain its return on total capital above 10% generally signifies operational efficiency and effectiveness in utilizing both debt and equity capital to generate earnings.
The decreasing trend in return on total capital from the third quarter of 2021 onwards may indicate potential challenges in optimizing the utilization of capital or a shift in the company's financial structure. It would be beneficial for stakeholders to further investigate the factors influencing this trend to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2024