Pitney Bowes Inc (PBI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 15.05 | 3.47 | 29.35 | 31.87 | 32.97 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | 50.39 | 22.38 | 14.68 |
Inventory Turnover Ratio:
Pitney Bowes Inc's inventory turnover ratio has been relatively stable over the years, ranging from 29.35 in 2022 to 3.47 in 2023. A high inventory turnover ratio indicates efficient inventory management, implying that the company is able to sell its inventory quickly. However, the significant drop in the ratio in 2023 may warrant further investigation into potential issues with inventory management or sales.
Receivables Turnover Ratio:
The data provided does not include information on Pitney Bowes Inc's receivables turnover ratio for any of the years, indicating that we cannot assess the efficiency of the company in collecting payments from customers based on this specific ratio.
Payables Turnover Ratio:
Similarly, the information does not provide data on Pitney Bowes Inc's payables turnover ratio for any of the years, so we are unable to evaluate the company's efficiency in managing its payables based on this ratio.
Working Capital Turnover Ratio:
The working capital turnover ratio for Pitney Bowes Inc shows an increasing trend from 14.68 in 2020 to 50.39 in 2022, indicating that the company is generating more revenue per dollar of working capital over the years. This suggests improved efficiency in utilizing its working capital to generate sales. However, there is missing data for 2023 and 2024, limiting a complete assessment of the company's working capital turnover efficiency.
Overall, based on the available data, Pitney Bowes Inc seems to have maintained a stable inventory turnover ratio and exhibited improving efficiency in utilizing working capital. However, additional information on receivables and payables turnover ratios would provide a more comprehensive analysis of the company's overall activity ratios and efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.25 | 105.06 | 12.43 | 11.45 | 11.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Pitney Bowes Inc activity ratios:
1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has been relatively stable over the years, with slight increases from 11.07 days in 2020 to 11.45 days in 2021 and further to 12.43 days in 2022. However, there was a significant spike to 105.06 days in 2023, which may indicate potential issues with inventory management or sales slowdown. This ratio improved in 2024 to 24.25 days but remained higher than the earlier years.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO) for any of the years. DSO is a crucial metric that measures how long it takes for a company to collect cash from its credit sales. The absence of DSO data makes it challenging to assess Pitney Bowes Inc's efficiency in collecting receivables.
3. Number of Days of Payables:
- Similar to DSO, data on the number of days of payables is not available for any of the years. The number of days of payables ratio indicates how long a company takes to pay its suppliers. Without this information, it is difficult to evaluate Pitney Bowes Inc's payment efficiency and relationships with its suppliers.
In conclusion, while the Days of Inventory on Hand ratio provides some insight into Pitney Bowes Inc's inventory management, the absence of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall working capital management and liquidity. Further information on these ratios would be necessary to assess Pitney Bowes Inc's efficiency in managing its operating cycle effectively.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.75 | 5.46 | 8.27 |
| Total asset turnover | 0.60 | 0.76 | 0.75 | 0.74 | 0.68 |
Long-term activity ratios such as the Fixed Asset Turnover and Total Asset Turnover provide insights into how efficiently a company like Pitney Bowes Inc utilizes its assets to generate sales.
- Fixed Asset Turnover: Pitney Bowes Inc's Fixed Asset Turnover has shown a decline over the years, from 8.27 in December 2020 to 4.75 in December 2022. This trend indicates that the company may be becoming less efficient in generating sales from its fixed assets. The lack of data for 2023 and 2024 impedes a complete analysis of the fixed asset turnover trend.
- Total Asset Turnover: Despite the fluctuations, Pitney Bowes Inc's Total Asset Turnover has generally improved from 0.68 in December 2020 to 0.60 in December 2024. This suggests that the company is managing to generate more sales relative to its total assets over the long term. However, the slight decrease in 2024 may indicate a need for further efficiency improvements.
Overall, Pitney Bowes Inc has shown mixed performance in utilizing its long-term assets to generate sales, with improvements in Total Asset Turnover offset by a decline in Fixed Asset Turnover. Further analysis incorporating additional financial data and industry benchmarks would provide a more comprehensive evaluation of the company's asset utilization efficiency.