Service Corporation International (SCI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,379,400 | 17,406,400 | 16,780,800 | 16,695,100 | 16,355,400 | 15,683,100 | 15,678,600 | 15,343,900 | 15,066,000 | 14,491,500 | 14,702,000 | 15,457,100 | 15,691,200 | 15,370,200 | 15,344,400 | 14,788,300 | 14,515,400 | 13,787,100 | 13,487,900 | 12,715,300 |
| 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 |
| Financial leverage ratio | 10.36 | 10.70 | 10.90 | 10.50 | 10.61 | 9.62 | 9.53 | 9.46 | 9.00 | 8.64 | 7.99 | 8.39 | 8.22 | 7.92 | 8.00 | 7.99 | 8.28 | 7.91 | 7.69 | 7.26 |
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 been gradually increasing over the analyzed period, starting at 7.26 on March 31, 2020, and reaching 10.36 on December 31, 2024. This indicates a higher level of financial risk for the company as its debt levels have been rising in proportion to its equity.
An increasing financial leverage ratio suggests that the company is relying more on debt financing to support its operations and growth, which could potentially lead to higher interest payments and financial vulnerability during economic downturns. A ratio above 1 indicates that the company has more debt than equity, indicating a leveraged capital structure.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of Service Corporation International to assess the company's ability to manage its debt and financial obligations effectively, as a high ratio may pose challenges in terms of financial stability and flexibility.
Peer comparison
Dec 31, 2024