Service Corporation International (SCI)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 2.83 | 2.82 | 3.05 | 2.90 | 3.02 | 2.77 | 2.71 | 2.67 | 2.54 | 2.46 | 2.15 | 2.15 | 2.04 | 1.94 | 1.97 | 1.86 | 2.00 | 2.06 | 2.04 | 2.02 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,751,450K ÷ $1,678,000K
= 2.83
The debt-to-equity ratio of Service Corporation International has shown fluctuations over the past few years. It increased from 2.02 on March 31, 2020, to a peak of 3.05 on June 30, 2024, before slightly decreasing to 2.83 on December 31, 2024. This indicates that the company has been relying more on debt financing compared to equity financing, which may pose higher financial risk.
The trend suggests that there has been a gradual increase in the debt component relative to equity in the company's capital structure. It is essential to monitor this ratio closely as higher levels of debt could lead to increased financial leverage and interest expense, impacting the company's solvency and financial stability.
Although the ratio has shown some variability, it is important for investors and stakeholders to assess the company's ability to manage its debt levels effectively, maintain a healthy financial position, and make timely repayments to creditors. It would be prudent for the company to evaluate its capital structure and consider optimizing the mix of debt and equity to support sustainable growth and minimize financial risks.
Peer comparison
Dec 31, 2024