Service Corporation International (SCI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,355,400 | 15,066,000 | 15,691,200 | 14,515,400 | 13,677,400 |
| Total stockholders’ equity | US$ in thousands | 1,541,260 | 1,673,190 | 1,909,440 | 1,752,750 | 1,823,310 |
| Financial leverage ratio | 10.61 | 9.00 | 8.22 | 8.28 | 7.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,355,400K ÷ $1,541,260K
= 10.61
Service Corp. International's financial leverage ratio has been on an upward trend over the past five years. The ratio has increased from 7.50 in 2019 to 10.61 in 2023, indicating a higher level of financial leverage in recent years. This implies that the company has been relying more on debt to finance its operations and investments compared to its equity. The steady increase in the financial leverage ratio may suggest that the company is taking on more debt to support its growth or expansion initiatives. It is important for investors and stakeholders to monitor this trend closely, as high financial leverage can increase the company's financial risk and impact its overall financial stability.
Peer comparison
Dec 31, 2023