Service Corporation International (SCI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,379,400 | 16,355,400 | 15,066,000 | 15,691,200 | 14,515,400 |
| Total stockholders’ equity | US$ in thousands | 1,678,000 | 1,541,260 | 1,673,190 | 1,909,440 | 1,752,750 |
| Financial leverage ratio | 10.36 | 10.61 | 9.00 | 8.22 | 8.28 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,379,400K ÷ $1,678,000K
= 10.36
The financial leverage ratio of Service Corporation International has shown a fluctuating trend over the past five years. Starting at 8.28 in December 31, 2020, the ratio decreased slightly to 8.22 by the end of 2021. However, there was an increase to 9.00 by the end of 2022, indicating a higher usage of debt to finance the company's assets.
The financial leverage ratio further increased to 10.61 by December 31, 2023, suggesting a significant rise in the company's reliance on debt financing, potentially increasing financial risk. By the end of 2024, the ratio declined to 10.36, but still remained at a relatively high level compared to previous years.
Overall, the trend in the financial leverage ratio of Service Corporation International indicates a fluctuating pattern with an increasing trend in recent years, highlighting a potential shift towards higher debt utilization in the company's capital structure. This may imply a higher level of financial risk and a need for careful monitoring of the company's debt management strategies.
Peer comparison
Dec 31, 2024