Service Corporation International (SCI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.74 | 0.75 | 0.72 | 0.67 | 0.67 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,751,450K ÷ ($4,751,450K + $1,678,000K)
= 0.74
Service Corporation International's debt-to-capital ratio has been relatively stable over the past five years, ranging from 0.67 in 2020 and 2021 to 0.74 in 2024. This ratio indicates that, on average, around 67% to 75% of the company's capital structure is funded by debt, while the remaining portion is financed by equity.
The slight increase in the debt-to-capital ratio from 2020 to 2024 suggests that the company may have taken on slightly more debt relative to its total capital over this time period. While this ratio can vary depending on industry norms and the company's financial strategy, it is essential to monitor it to assess the company's financial leverage and risk profile.
Service Corporation International's debt-to-capital ratio remaining within this range indicates that the company has maintained a balanced capital structure between debt and equity financing, which may be a strategic decision to benefit from tax advantages associated with debt while managing financial risk. However, continuous monitoring of this ratio is crucial to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024