Service Corporation International (SCI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 933,084 | 947,709 | 927,041 | 1,195,800 | 824,893 |
| Interest expense | US$ in thousands | 257,771 | 239,447 | 172,109 | 150,610 | 163,063 |
| Interest coverage | 3.62 | 3.96 | 5.39 | 7.94 | 5.06 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $933,084K ÷ $257,771K
= 3.62
Service Corporation International's interest coverage ratio has exhibited fluctuations over the past five years. In 2020, the company had an interest coverage ratio of 5.06, indicating that it was able to cover its interest expenses 5.06 times with its earnings before interest and taxes (EBIT).
This ratio improved significantly to 7.94 in 2021, reflecting a higher ability to meet its interest obligations. However, in 2022, the interest coverage ratio declined to 5.39, suggesting a slight decrease in the company's ability to cover its interest expenses.
Further, in 2023, the interest coverage ratio decreased to 3.96, indicating a potentially increased financial risk as the company's earnings may not be sufficient to cover its interest payments. By the end of 2024, the ratio further decreased to 3.62, which may signal potential challenges in meeting interest obligations from operating profits.
Overall, the trend in Service Corporation International's interest coverage ratio shows some variability, with fluctuations that could be attributed to changes in profitability and the company's debt levels. It may be essential for stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024