Service Corporation International (SCI)

Service Corporation International's solvency ratios show a mixed trend over the past five years.

1. Debt-to-assets ratio has increased slightly from 0.24 in 2020 to 0.27 in 2024. This indicates that the company's debt relative to its total assets has been relatively stable and remains at a moderate level.

2. Debt-to-capital ratio has shown a gradual increase from 0.67 in 2020 to 0.74 in 2024. This suggests that the proportion of the company's capital financed by debt has been increasing over the years.

3. Debt-to-equity ratio has fluctuated, with a notable increase from 2.00 in 2020 to 3.02 in 2023, before decreasing to 2.83 in 2024. This indicates that the company has been relying more on debt to finance its operations compared to equity, although there has been some improvement in 2024.

4. Financial leverage ratio has shown a consistent upward trend, increasing from 8.28 in 2020 to 10.36 in 2024. This implies that the company's reliance on debt to fund its operations has been growing, which may increase its financial risk.

Overall, Service Corporation International's solvency ratios reflect a moderate level of debt usage, with a trend towards higher leverage and debt financing over the years. This suggests the company may have been taking on more debt to support its growth or capital expenditures, which could impact its financial stability and flexibility in the long term.

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Coverage ratios

Service Corporation International's interest coverage ratio has shown some fluctuations over the years. In 2020, the interest coverage ratio was 5.06, indicating that the company's operating income was sufficient to cover its interest expenses 5.06 times over.

By the end of 2021, the interest coverage ratio improved to 7.94, suggesting a stronger ability to cover interest expenses with operating income. This increase indicates a positive trend in the company's financial health.

However, in 2022, the interest coverage ratio decreased to 5.39, possibly indicating a slight weakening in the company's ability to cover its interest obligations. The ratio further declined to 3.96 by the end of 2023 and dropped even lower to 3.62 by the end of 2024. These decreasing trends may raise concerns about the company's ability to meet its interest payments from operating income alone.

Overall, while the interest coverage ratios have fluctuated over the years, it is essential for Service Corporation International to monitor and manage its financial obligations to ensure sustainable operations and maintain investor confidence.