Service Corporation International (SCI)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 3.02 | 2.54 | 2.04 | 2.00 | 1.93 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,649,160K ÷ $1,541,260K
= 3.02
The debt-to-equity ratio of Service Corp. International has shown an increasing trend over the past five years, indicating a higher reliance on debt to finance its operations compared to equity. Specifically, the ratio has increased from 1.97 in 2019 to 3.08 in 2023.
This significant rise in the debt-to-equity ratio may suggest that the company has been taking on more debt relative to its equity to support its growth or possibly due to financing needs. It is worth noting that a high debt-to-equity ratio can indicate higher financial risk as the company may face challenges in meeting its debt obligations or may be more vulnerable to changes in interest rates.
Stakeholders should closely monitor this trend and consider the company's ability to manage its debt levels effectively while maintaining a healthy balance between debt and equity financing. Additionally, assessing the overall financial health and performance of Service Corp. International alongside its debt management strategies would provide a more comprehensive understanding of the company's financial position.
Peer comparison
Dec 31, 2023