Service Corporation International (SCI)
Debt-to-equity 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-equity ratio | 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 | 1.93 | 1.95 | 1.99 | 2.00 |
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 eight quarters, indicating a higher level of leverage relative to shareholder equity. From Q1 2022 to Q4 2023, the ratio has moved from 2.19 to 3.08, suggesting a significant rise in the proportion of debt used to finance the company's operations and investments.
The ratios between 2.18 and 3.08 indicate that the company is relying more on debt financing compared to equity, which could suggest increased financial risk due to higher interest payments and potential obligations to creditors. This trend may be a cause for concern for investors and stakeholders as higher debt levels could potentially lead to financial instability in the future.
It is important for Service Corp. International to monitor and manage its debt levels effectively to ensure sustainable growth and profitability while maintaining a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023