Service Corporation International (SCI)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.28 0.29 0.28 0.28 0.28 0.28 0.27 0.26 0.25 0.24 0.25 0.23 0.24 0.26 0.26 0.28 0.26 0.26 0.26 0.26
Debt-to-capital ratio 0.75 0.73 0.73 0.73 0.72 0.71 0.68 0.68 0.67 0.66 0.66 0.65 0.67 0.67 0.67 0.67 0.66 0.66 0.67 0.67
Debt-to-equity ratio 3.02 2.77 2.71 2.67 2.54 2.46 2.15 2.15 2.04 1.94 1.97 1.86 2.00 2.06 2.04 2.02 1.93 1.95 1.99 2.00
Financial leverage ratio 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 7.50 7.50 7.66 7.69

Service Corp. International's solvency ratios indicate a stable and consistent financial position over the past eight quarters. The debt-to-assets ratio has remained constant at 0.29, suggesting that approximately 29% of the company's assets are financed by debt. This indicates a prudent level of leverage, as the company has not significantly increased its reliance on debt to fund its operations.

The debt-to-capital ratio has shown a slight upward trend from 0.72 to 0.75, indicating that debt accounts for around 75% of the company's capital structure in the most recent quarter. While this ratio has increased, it still remains within a reasonable range and does not pose a significant risk to the company's financial stability.

The debt-to-equity ratio has also exhibited an upward trend, increasing from 2.18 to 3.08 over the same period. This indicates that debt is increasingly used to finance the company's operations relative to equity. However, the ratio is still below 4, which is generally considered acceptable in many industries.

The financial leverage ratio, which measures the company's level of debt relative to its equity, has shown fluctuations but generally remained high, ranging from 7.99 to 10.61. This ratio suggests that the company relies heavily on debt financing, which can amplify returns but also increases financial risk.

Overall, Service Corp. International's solvency ratios demonstrate a conservative and stable capital structure, with a moderate level of debt relative to assets and capital. However, the increasing trend in the debt-to-equity ratio and the high financial leverage ratio highlight the need for careful monitoring of the company's debt levels to ensure long-term financial health and sustainability.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 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 3.50 3.81 3.70 3.70

Service Corp. International's interest coverage has shown a decreasing trend over the last eight quarters, starting at 7.54 in Q1 2022 and declining to 3.90 in Q4 2023. The company's ability to cover its interest expense has weakened over time, indicating a potential increase in the risk of default on its interest payments. While the interest coverage ratio above 1 suggests the company can currently meet its interest obligations, the downward trend raises concerns about its future financial health and ability to service debt. It is essential for investors and stakeholders to closely monitor Service Corp. International's interest coverage ratio and assess the company's overall financial stability in relation to its debt obligations.