SCI Case Study

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Service Corporation International (SCI) is an international company that owns and operates cemeteries, funeral homes, crematories and sells caskets, urns, and vaults. SCI is the largest owner of funeral homes and cemeteries in the United States and also operates in Germany, South America and Canada. According to Business Week the funeral or deathcare industry makes over $16 billion a year in the United States and is made up of approximately 25,000 small businesses that are sought after by large companies such as SCI, and a handful of larger corporations. In the 1960 's SCI began as a small, owner operated funeral services business that purchased a couple of local competitors to take advantage of cost savings. Proving the effectiveness of this …show more content…

Though now publicly traded on the NYSE, Robert Wiltrip, a licensed funeral director and founder of SCI continues to serve as the chairman of the company 's Board of Directors. Despite a strong start that lead to large growth, SCI hit trouble in the late 1990’s and early 2000’s. Due to mismanagement of debt and possibly other outside factors the company was forced to sell off many of their new acquired businesses. Following this period of failure the company purposefully restructured and formed a new strategy before pushing forward again, leading to their current successes, growth and expansive market …show more content…

A number of key concerns about the financial health and management of SCI present themselves in the data outlined above. Though the main concerns tie to a unique requirement of the funeral service industry, mainly the purchase and holding of long term assets such as land and buildings. This may explain the poor numbers relating to the lack of liquidity (Current/Quick Ratios), as well as the low return on invested capital. To better understand if these numbers represent commonalities in the funeral services industry it is essential to compare SCI to its closest market

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