Service Corporation International (SCI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 933,084 | 916,723 | 924,613 | 936,694 | 947,709 | 874,345 | 853,156 | 836,977 | 927,041 | 1,055,899 | 1,166,496 | 1,189,264 | 1,195,797 | 1,181,594 | 1,074,605 | 1,016,868 | 824,893 | 778,871 | 692,851 | 652,622 |
| Interest expense (ttm) | US$ in thousands | 257,771 | 259,083 | 254,791 | 249,883 | 239,447 | 223,906 | 205,902 | 186,997 | 172,109 | 161,852 | 156,962 | 153,826 | 150,610 | 148,089 | 150,192 | 154,524 | 163,063 | 171,297 | 177,254 | 182,804 |
| Interest coverage | 3.62 | 3.54 | 3.63 | 3.75 | 3.96 | 3.90 | 4.14 | 4.48 | 5.39 | 6.52 | 7.43 | 7.73 | 7.94 | 7.98 | 7.15 | 6.58 | 5.06 | 4.55 | 3.91 | 3.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $933,084K ÷ $257,771K
= 3.62
The interest coverage ratio for Service Corporation International has shown a generally positive trend over the reporting period, starting at 3.57 as of March 31, 2020, and gradually increasing to 7.43 by June 30, 2022. This indicates the company's ability to cover its interest expenses from its operating profits has improved significantly.
However, from September 30, 2022, to December 31, 2024, there has been a slight decline in the interest coverage ratio, falling to 3.54 by September 30, 2024. This could suggest a potential strain on the company's ability to meet its interest obligations from its earnings.
Overall, monitoring the interest coverage ratio closely is important to ensure that the company remains financially healthy and can continue to service its debt obligations effectively.
Peer comparison
Dec 31, 2024