Pitney Bowes Inc (PBI)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.60 | 3.91 | 3.97 | 4.09 | 3.86 | 4.17 | 4.34 | 4.21 | 4.04 | 4.12 | 4.15 | 3.98 | 3.62 | 3.43 | 3.22 | 3.12 | 2.91 | 2.91 | 2.61 | 2.85 | |
| DSO | days | 101.28 | 93.38 | 91.95 | 89.21 | 94.63 | 87.55 | 84.04 | 86.69 | 90.34 | 88.65 | 87.90 | 91.73 | 100.70 | 106.47 | 113.23 | 117.02 | 125.23 | 125.42 | 139.79 | 128.18 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.60
= 101.28
Pitney Bowes, Inc.'s days of sales outstanding (DSO) have exhibited a general upward trend over the past eight quarters, with quarter-over-quarter fluctuations. In Q4 2023, the DSO stood at 101.22 days, showing an increase compared to the previous quarter (Q3 2023) at 92.67 days. This extended credit period suggests that the company is taking longer to collect payments from its customers, which could potentially strain its cash flow and liquidity position.
Additionally, when compared to the corresponding quarter in the previous year (Q4 2022) at 93.73 days, the DSO has increased, indicating a deteriorating collection efficiency over the year. The peak DSO was observed in Q1 2023 at 87.16 days, signifying a significant delay in receivables turnover.
On the positive side, Pitney Bowes managed to reduce DSO in Q3 2022 at 82.46 days compared to Q2 2022 at 85.43 days, demonstrating an improvement in collecting sales proceeds from customers. However, the recent trend of increasing DSO levels in the later quarters necessitates close monitoring to ensure timely collection and efficient management of accounts receivable.