Service Corporation International (SCI)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 3,513,530 | 3,466,770 | 3,464,900 | 3,409,200 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,823,310 | 1,775,490 | 1,744,230 | 1,700,450 |
| Debt-to-capital ratio | 0.75 | 0.73 | 0.73 | 0.73 | 0.72 | 0.71 | 0.68 | 0.68 | 0.67 | 0.66 | 0.66 | 0.65 | 0.67 | 0.67 | 0.67 | 0.67 | 0.66 | 0.66 | 0.67 | 0.67 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,649,160K ÷ ($4,649,160K + $1,541,260K)
= 0.75
The debt-to-capital ratio of Service Corp. International has been gradually increasing over the past quarters, indicating a rising level of debt relative to the company's total capital structure. The trend suggests that the company has been relying more on debt financing to support its operations and growth initiatives.
Starting from Q1 2022 at 0.69, the ratio has shown a steady uptrend, reaching 0.75 by Q4 2023. This progression may raise concerns about the company's financial leverage and ability to meet its debt obligations in the long run, especially if economic conditions deteriorate or interest rates rise.
Further analysis should be conducted to assess the sustainability of the company's debt levels and its impact on overall financial health and risk profile. Comparing the debt-to-capital ratio with industry benchmarks and evaluating the company's debt repayment capacity and liquidity position will provide a comprehensive understanding of its debt management practices.
Peer comparison
Dec 31, 2023